SEHK:2869

Stock Analysis Report

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Executive Summary

Greentown Service Group Co. Ltd. provides residential property management services in China, Australia, and Hong Kong.


Snowflake Analysis

Flawless balance sheet with high growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

2869

-4.7%

HK Commercial Services

-3.7%

HK Market


1 Year Return

67.6%

2869

44.6%

HK Commercial Services

-10.4%

HK Market

Return vs Industry: 2869 exceeded the Hong Kong Commercial Services industry which returned 44.6% over the past year.

Return vs Market: 2869 exceeded the Hong Kong Market which returned -10.4% over the past year.


Shareholder returns

2869IndustryMarket
7 Day-1.1%-4.7%-3.7%
30 Day0.4%1.5%-3.0%
90 Day6.2%6.3%-7.6%
1 Year69.8%67.6%48.0%44.6%-7.4%-10.4%
3 Year182.2%176.5%-41.7%-46.3%-4.5%-14.2%
5 Yearn/a-71.1%-74.0%-16.2%-29.1%

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?

1.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2869 (HK$10.34) is trading below our estimate of fair value (HK$10.48)

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 (55.5x) compared to the Commercial Services industry average (11.4x).

PE vs Market: 2869 is poor value based on its PE Ratio (55.5x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: 2869 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: 2869 is overvalued based on its PB Ratio (9.7x) compared to the HK Commercial Services industry average (0.9x).


Next Steps

Future Growth

How is Greentown Service Group forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2869's forecast earnings growth (24.8% per year) is above the savings rate (1.6%).

Earnings vs Market: 2869's earnings (24.8% per year) are forecast to grow faster than the Hong Kong market (16.5% per year).

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

Revenue vs Market: 2869's revenue (17.2% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 2869's revenue (17.2% per year) is forecast to grow slower 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 (23.1%)


Next Steps

Past Performance

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

22.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2869 has high quality earnings.

Growing Profit Margin: 2869's current net profit margins (5.6%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: 2869's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: 2869's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2869 had negative earnings growth (-1.2%) over the past year, making it difficult to compare to the Commercial Services industry average (3.8%).


Return on Equity

High ROE: 2869's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is Greentown Service Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2869's short term assets (CN¥5.2B) exceed its short term liabilities (CN¥4.1B).

Long Term Liabilities: 2869's short term assets (CN¥5.2B) exceed its long term liabilities (CN¥1.4B).


Debt to Equity History and Analysis

Debt Level: 2869's debt to equity ratio (17.4%) is considered satisfactory.

Reducing Debt: 2869's debt to equity ratio has reduced from 46.3% to 17.4% over the past 5 years.

Debt Coverage: 2869's debt is well covered by operating cash flow (178.9%).

Interest Coverage: 2869's interest payments on its debt are well covered by EBIT (814.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.72%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 2869's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.65%).

High Dividend: 2869's dividend (0.72%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.31%).


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

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Zhihua Wu (39yo)

2.17yrs

Tenure

CN¥4,801,000

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 ($USD671.90K) is above average for companies of similar size in the Hong Kong market ($USD491.47K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hairong Li
Chairman of the Board5.5yrsCN¥3.30m15.33% CN¥4.7b
Zhihua Wu
CEO, CFO & Executive Director2.17yrsCN¥4.80m1.02% CN¥310.2m
Hao Chen
Executive Director4.5yrsCN¥3.56mno data
Keli Jin
Chief Operating Officer2.17yrsno datano data
Weidong Yuan
Chief Technology Officer4.5yrsno datano data
Yaping XU
Chief Marketing Officerno datano datano data
Minqing Fang
Chief Quality Officer4.5yrsno datano data
Hong ZHOU
Chief Safety Officerno datano datano data
Yafei WENG
Chief Quality Officerno datano datano data
Sau Mei Ng
Company Secretary4.5yrsno datano data

4.5yrs

Average Tenure

45yo

Average Age

Experienced Management: 2869's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hairong Li
Chairman of the Board5.5yrsCN¥3.30m15.33% CN¥4.7b
Zhihua Wu
CEO, CFO & Executive Director2.17yrsCN¥4.80m1.02% CN¥310.2m
Hao Chen
Executive Director4.5yrsCN¥3.56mno data
Chiu Kwok Poon
Independent Non-Executive Director3.83yrsCN¥240.00kno data
Bainian Shou
Non-Executive Director4.5yrsCN¥240.00kno data
Yibo Xia
Non-Executive Director4.5yrsCN¥240.00kno data
Zhangfa Yang
Vice Chairmanno dataCN¥4.27m2.04% CN¥620.4m
Ka Yi Wong
Independent Non-Executive Director3.83yrsCN¥240.00kno data
Feng Li
Independent Non-Executive Director2.42yrsCN¥240.00kno data
Guangjian Wang
Non Executive Director0.33yrno datano data

4.5yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 2869's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.1%.


Top Shareholders

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$30.480b
  • Shares outstanding: 2.95b
  • 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 China, Australia, and Hong Kong. The company offers property management services, including security, cleaning, gardening, and repair and maintenance services; project planning, design management, construction management, and marketing management consulting services; and management consulting services to real estate developers and property management companies. It also offers home living, community space, property asset management, and cultural and education services to property owners and residents. In addition, the company provides nursery, hotel and resorts management, recreational, exhibitions and market promotion, business consultancy and housekeeping, property management related training, computer networking technology, education consultancy, financial service outsourcing, and information technology and consultancy service. Further, it offers pension, supply chain management, education software development, advertisement design, equipment maintenance, and wholesale and retail services, as well as community leasing, sales, and other services. The company was founded in 1998 and is headquartered in Hangzhou, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 13:33
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.