[ET Net News Agency, 5 September 2019] Goldman Sachs raised its target price for
Greentown Service Group (02869) to HK$8.4 from HK$8 and maintained its "neutral" rating.
Post 1H results, the research house hosted an NDR with management in Shanghai. They
expect better GFA under management growth in 2H due to back-end loaded delivery, which
will lead to 25% property management (PM) services growth for FY2019.
Management slightly cut segment revenue growth from 40%-45% to 30%-40% to factor in
weakness in its housing agency business and tougher outlook in 2H. Goldman revised its
2019-21 EPS forecasts by -10%/+3%/+3% to reflect lower topline, slightly higher VAS margin
and higher effective tax rate for FY2019. (KL)