King's Financial News | Industrial Securities issued research reports stating that Greentown Management Holdings (09979) achieved revenue of 1.67 billion yuan in the first half of 2024, a year-on-year growth of 7.8%; comprehensive gross margin of 51.5%, a year-on-year decrease of 0.5 percentage points, with government project construction gross margin decreasing by 4.4 percentage points to 40.4% year-on-year, mainly due to lower government project construction fees; net income attributable to parent company reached 0.501 billion yuan, a year-on-year growth of 5.8%, and the net margin attributable to parent company decreased by 0.6 percentage points to 30.0% year-on-year.
The bank indicated that as of September 30, 2024, the company's new entrusted project construction fees were 6.62 billion yuan, a decrease of 16.4% year-on-year, mainly due to potential clients delaying land acquisitions and current downward pressure on industry unit prices and rates. As of June 30, 2024, the company had an under-construction area of approximately 53.2 million square meters, an 8.2% year-on-year increase; contracted area of approximately 122.8 million square meters, an 8.1% year-on-year increase, corresponding to a total saleable value of 892 billion yuan, with major economic zone projects accounting for 75.6%.
The bank further mentioned that based on the overall slowdown in the industry growth rate, they have reduced the company's profit forecast. However, as the leading player in the construction industry and with continuous efforts in real estate policies, the bank expects that the performance is still likely to remain stable. The bank predicts the company's net income attributable to the parent company for 2024/2025/2026 to be 1.025/1.207/1.35 billion yuan respectively, with year-on-year growth of 5.3%/17.8%/11.8% respectively. They maintain a "buy" rating, with the closing price as of October 15 corresponding to P/E valuations of 6.0/5.1/4.6 times for 2024/2025/2026.
