Greentown Management 9979

[winston]

not vested

GREENTOWN MGMT(9979)

Analysis：

GREENTOWN MANAGEMENT(9979) is primarily engaged in the provision of project management services in China.

In 2022, investment in China`s real estate market has shown a decentralization trend.

State-owned enterprises, central enterprises and local urban investment companies, have become the main land acquirers.

Land acquisition projects of urban investment companies in search for professional development services has become the major trend.

On the other hand, China has begun to accelerate the construction of affordable housing for low income and middle-income groups and young people, and the government has started to promote its project management model nationwide.

Furthermore, under the policy of “ensure the delivery of properties", financial institutions accelerated the development and construction of non-performing projects. Therefore, the trend of separation of investment and development was more evident, with more and more business opportunities from clients such as the government, state-owned enterprises, local urban investment companies, and financial institutions, bringing about a new round of development opportunities to the project management industry.

For the six months ended 30 June 2023, the total GFA of the newly contracted projects under project management business of the Greentown Management reached 17.27 million sq.m., representing an increase of approximately 30.6% compared with the same period last year;

The estimated amount of project management fee for the newly contracted projects under project management business was RMB5.12 billion, representing an increase of approximately! 26.3% compared with the same period last year.

As of 30 June 2023, the total GFA of the contracted projects under project management business of the Group reached 113.59 million sq.m., the area under construction reached 49.14 million sq.m.. (I do not hold the above stock)

Strategy：
Buy-in Price: $6.20, Target Price: $7.00, Cut Loss Price: $5.80

Source: Phillips