SEHK:2869

Stock Analysis Report

Executive Summary

Greentown Service Group Co. Ltd. provides residential property management services in the People's Republic of China.

Snowflake

Fundamentals

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

How has Greentown Service Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2869's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.4%

2869

1.1%

HK Commercial Services

-0.02%

HK Market


1 Year Return

43.8%

2869

39.9%

HK Commercial Services

0.6%

HK Market

Return vs Industry: 2869 exceeded the Hong Kong Commercial Services industry which returned 39.9% over the past year.

Return vs Market: 2869 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

2869IndustryMarket
7 Day4.4%1.1%-0.02%
30 Day8.7%6.8%1.4%
90 Day49.5%22.7%3.8%
1 Year45.6%43.8%43.2%39.9%4.2%0.6%
3 Year227.0%216.9%-23.3%-29.5%20.4%8.3%
5 Yearn/a-45.6%-51.6%18.9%-0.9%

Price Volatility Vs. Market

How volatile is Greentown Service Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Greentown Service Group undervalued compared to its fair value and its price relative to the market?

35.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2869 (HK$9) is trading below our estimate of fair value (HK$13.94)

Significantly Below Fair Value: 2869 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2869 is poor value based on its PE Ratio (46x) compared to the Commercial Services industry average (12.2x).

PE vs Market: 2869 is poor value based on its PE Ratio (46x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 2869 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 2869 is overvalued based on its PB Ratio (9.3x) compared to the HK Commercial Services industry average (1.1x).


Next Steps

Future Growth

How is Greentown Service Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

30.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2869's forecast earnings growth (30.8% per year) is above the savings rate (2%).

Earnings vs Market: 2869's earnings (30.8% per year) are forecast to grow faster than the Hong Kong market (11.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2869's revenue (20.7% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 2869's revenue (20.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2869's Return on Equity is forecast to be high in 3 years time (28%)


Next Steps

Past Performance

How has Greentown Service Group performed over the past 5 years?

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2869 has a high level of non-cash earnings.

Growing Profit Margin: 2869's current net profit margins (6.6%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: 2869's earnings have grown significantly by 26% per year over the past 5 years.

Accelerating Growth: 2869's earnings growth over the past year (11.2%) is below its 5-year average (26% per year).

Earnings vs Industry: 2869 earnings growth over the past year (11.2%) exceeded the Commercial Services industry 9.1%.


Return on Equity

High ROE: 2869's Return on Equity (19%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Greentown Service Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2869's short term assets (CN¥4.6B) exceeds its short term liabilities (CN¥3.6B)

Long Term Liabilities: 2869's short term assets (CN¥4.6B) exceeds its long term liabilities (780.2M)


Debt to Equity History and Analysis

Debt Level: 2869's debt to equity ratio (11.9%) is considered satisfactory.

Reducing Debt: 2869's debt to equity ratio has reduced from 32.7% to 11.9% over the past 5 years.

Debt Coverage: 2869's debt is well covered by operating cash flow (158.3%).

Interest Coverage: 2869 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2869 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2869's debt is covered by short term assets (assets are 15.5x debt).


Next Steps

Dividend

What is Greentown Service Group's current dividend yield, its reliability and sustainability?

0.80%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%2.3%markettop25%6.3%industryaverage1.7%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: 2869's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 2869's dividend (0.8%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 2869 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 2869 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2869 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2869's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Greentown Service Group's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Zhihua Wu (39yo)

1.7yrs

Tenure

CN¥3,424,000

Compensation

Mr. Zhihua Wu has been Chief Executive Officer of Greentown Service Group Co. Ltd. since March 23, 2018 and its Chief Financial Officer since August 4, 2018. Mr. Wu has been Executive Director of Greentown ...


CEO Compensation Analysis

Compensation vs Market: Zhihua's total compensation ($USD487.28K) is about average for companies of similar size in the Hong Kong market ($USD513.16K).

Compensation vs Earnings: Zhihua's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.0yrs

Average Tenure

45yo

Average Age

Experienced Management: 2869's management team is considered experienced (4 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

56yo

Average Age

Experienced Board: 2869's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥579,51912 Sep 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares75,881
Max PriceCN¥7.64
SellCN¥13,102,31911 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares1,747,978
Max PriceCN¥7.50

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Sau Mei Ng (42yo)

    Company Secretary

    • Tenure: 4yrs
  • Hairong Li (61yo)

    Chairman of the Board

    • Tenure: 5yrs
    • Compensation: CN¥3.00m
  • Zhihua Wu (39yo)

    CEO, CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥3.42m
  • Hao Chen (49yo)

    Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥2.62m
  • Minqing Fang (48yo)

    Chief Quality Officer

    • Tenure: 4yrs
  • Weidong Yuan (49yo)

    Chief Technology Officer

    • Tenure: 4yrs
  • Yaping XU (39yo)

    Chief Marketing Officer

    • Tenure: 0yrs
  • Keli Jin (36yo)

    Chief Operating Officer

    • Tenure: 1.7yrs
  • Hong ZHOU (55yo)

    Chief Safety Officer

    • Tenure: 0yrs
  • Yafei WENG (39yo)

    Chief Quality Officer

    • Tenure: 0yrs

Board Members

  • Chiu Kwok Poon (57yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥240.00k
  • Bainian Shou (65yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥240.00k
  • Yibo Xia (56yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥240.00k
  • Hairong Li (61yo)

    Chairman of the Board

    • Tenure: 5yrs
    • Compensation: CN¥3.00m
  • Zhangfa Yang (46yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: CN¥3.15m
  • Zhihua Wu (39yo)

    CEO, CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥3.42m
  • Hao Chen (49yo)

    Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥2.62m
  • Ka Yi Wong (43yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥240.00k
  • Feng Li (61yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥240.00k

Company Information

Greentown Service Group Co. Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Greentown Service Group Co. Ltd.
  • Ticker: 2869
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: HK$25.215b
  • Shares outstanding: 2.79b
  • Website: https://www.lvchengfuwu.com

Number of Employees


Location

  • Greentown Service Group Co. Ltd.
  • Xixi International Business Center
  • Block B
  • Hangzhou
  • Zhejiang Province
  • 310012
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2869SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2016
2869SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2016
2869SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2016

Biography

Greentown Service Group Co. Ltd. provides residential property management services in the People's Republic of China. The company operates in three segments: Property Services, Community Living Services, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 13:04
End of Day Share Price2019/11/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.