According to a research report released by CITIC Construction, in the first half of 2024, Green City Management (09979) will newly develop construction projects with a building area of 17.46 million square meters, a year-on-year increase of 1.1%; the estimated agent construction fee for new construction projects is 4.19 billion yuan, a year-on-year decrease of 18.1%, mainly due to the proportion of government agent construction with low fees accounting for 30.7% of the new development area, an increase of 3.1 percentage points compared with the same period last year. The company's leading position in construction agent continues to be stable, and the market share calculated by the newly signed construction area in the first half of the year is 23.8%, an increase of 3.4 percentage points from the full year in 2023. The company provides extensive support for inventory digestion, indemnificatory apartment construction, and insurance exchange building in the real estate sector. The growth space of related business is expected to further open up.
The bank predicted that the company's EPS for 2024-2026 will be 0.61/0.77/0.95 yuan. The company maintains its leading position in the construction agent industry, extensively supporting various key works in the real estate sector, and the growth space of its business is expected to further open up. We maintain our buy rating and target price of 9.51 Hong Kong dollars.