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2869

Greentown Service Group SEHK:2869 Stock Report

Last Price

HK$6.42

Market Cap

HK$20.9b

7D

-2.7%

1Y

-27.6%

Updated

10 Aug, 2022

Data

Company Financials +
2869 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends3/6

2869 Stock Overview

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

Greentown Service Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Greentown Service Group
Historical stock prices
Current Share PriceHK$6.42
52 Week HighHK$9.35
52 Week LowHK$5.31
Beta0.28
1 Month Change-24.91%
3 Month Change-12.30%
1 Year Change-27.62%
3 Year Change4.05%
5 Year Change37.47%
Change since IPO191.82%

Recent News & Updates

Jul 12
Is There An Opportunity With Greentown Service Group Co. Ltd.'s (HKG:2869) 34% Undervaluation?

Is There An Opportunity With Greentown Service Group Co. Ltd.'s (HKG:2869) 34% Undervaluation?

Today we will run through one way of estimating the intrinsic value of Greentown Service Group Co. Ltd. ( HKG:2869 ) by...

May 18
Here's Why I Think Greentown Service Group (HKG:2869) Might Deserve Your Attention Today

Here's Why I Think Greentown Service Group (HKG:2869) Might Deserve Your Attention Today

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

2869HK Real EstateHK Market
7D-2.7%-1.1%-0.6%
1Y-27.6%-37.6%-23.8%

Return vs Industry: 2869 exceeded the Hong Kong Real Estate industry which returned -36.2% over the past year.

Return vs Market: 2869 underperformed the Hong Kong Market which returned -22.7% over the past year.

Price Volatility

Is 2869's price volatile compared to industry and market?
2869 volatility
2869 Average Weekly Movement6.0%
Real Estate Industry Average Movement5.8%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 2869 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2869's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199837,639Keli Jinhttps://www.lvchengfuwu.com

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 to real estate developers; and management consulting services to real estate developers and property management companies.

Greentown Service Group Fundamentals Summary

How do Greentown Service Group's earnings and revenue compare to its market cap?
2869 fundamental statistics
Market CapCN¥17.95b
Earnings (TTM)CN¥846.28m
Revenue (TTM)CN¥12.57b

21.2x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2869 income statement (TTM)
RevenueCN¥12.57b
Cost of RevenueCN¥10.24b
Gross ProfitCN¥2.33b
Other ExpensesCN¥1.48b
EarningsCN¥846.28m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.26
Gross Margin18.55%
Net Profit Margin6.73%
Debt/Equity Ratio2.4%

How did 2869 perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

50%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2869 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2869?

Other financial metrics that can be useful for relative valuation.

2869 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA11x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does 2869's PE Ratio compare to its peers?

2869 PE Ratio vs Peers
The above table shows the PE ratio for 2869 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.3x
6049 Poly Property Services
22.7x19.3%HK$22.4b
10 Hang Lung Group
7.3xn/aHK$18.5b
1528 Red Star Macalline Group
5.3x20.5%HK$23.2b
14 Hysan Development
17.9x16.1%HK$24.7b
2869 Greentown Service Group
21.2x19.1%HK$20.9b

Price-To-Earnings vs Peers: 2869 is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the peer average (13.3x).


Price to Earnings Ratio vs Industry

How does 2869's PE Ratio compare vs other companies in the HK Real Estate Industry?

Price-To-Earnings vs Industry: 2869 is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the Hong Kong Real Estate industry average (5.6x)


Price to Earnings Ratio vs Fair Ratio

What is 2869's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2869 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.2x
Fair PE Ratio6.7x

Price-To-Earnings vs Fair Ratio: 2869 is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the estimated Fair Price-To-Earnings Ratio (6.7x).


Share Price vs Fair Value

What is the Fair Price of 2869 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2869 (HK$6.42) is trading below our estimate of fair value (HK$12.65)

Significantly Below Fair Value: 2869 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2869's forecast earnings growth (19.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 2869's earnings (19.1% per year) are forecast to grow faster than the Hong Kong market (16.7% per year).

High Growth Earnings: 2869's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2869's revenue (18.9% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 2869's revenue (18.9% 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 low in 3 years time (19.6%).


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Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2869 has high quality earnings.

Growing Profit Margin: 2869's current net profit margins (6.7%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: 2869's earnings have grown significantly by 21.3% per year over the past 5 years.

Accelerating Growth: 2869's earnings growth over the past year (19.1%) is below its 5-year average (21.3% per year).

Earnings vs Industry: 2869 earnings growth over the past year (19.1%) exceeded the Real Estate industry 17%.


Return on Equity

High ROE: 2869's Return on Equity (12.1%) is considered low.


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Financial Health

How is Greentown Service Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2869's short term assets (CN¥9.3B) exceed its short term liabilities (CN¥5.8B).

Long Term Liabilities: 2869's short term assets (CN¥9.3B) exceed its long term liabilities (CN¥1.2B).


Debt to Equity History and Analysis

Debt Level: 2869 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 2869's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2869's debt is well covered by operating cash flow (588%).

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


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.93%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2869's dividend (2.93%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.82%).

High Dividend: 2869's dividend (2.93%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.35%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2869 has been paying a dividend for less than 10 years.

Growing Dividend: 2869's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (49.9%), 2869's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (86.4%), 2869's dividend payments are covered by cash flows.


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Management

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

1.2yrs

Average management tenure


CEO

Keli Jin (39 yo)

1.17yrs

Tenure

Ms. Keli Jin has been the Chief Executive Officer of Greentown Service Group Co. Ltd. since June 21, 2021 and serves as its Executive Director since February 01, 2022. She had been Chief Operating Officer...


Leadership Team

Experienced Management: 2869's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: 2869's board of directors are considered experienced (6.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Greentown Service Group Co. Ltd.
  • Ticker: 2869
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Implied Market Cap: HK$20.865b
  • Shares outstanding: 3.25b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.