Equity Analysis /
Hong Kong

HK : Greentown Service - Huge reserve pipeline pending conversion

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    Steven MAK
    Will Chu
    28 March 2022
    Published byCGS-CIMB

    Greentown Service (GTS) reported a 20% increase in core net profit for FY21, with final DPS flat yoy at HK$0.20. Its reserve GFA is still higher than its managed GFA, implying a solid pipeline available for conversion to managed GFA in the next few years. Despite a rise in its average days of trade and other receivables, we think GTS’s collection risk is still low. Reiterate Add with a lower TP of HK$7.4.