External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

GreenTown Management Holdings / Equity Bottom-Up

<ul><li>Greentown Management delivered +31% YoY growth in net profit in FY23 and offered a special dividend for the second time that maintained the pay-out ratio at 100%, representing 8% div. yield.</li><li>We think company’s capability of timely business restructuring supported its consistent delivery of strong performance among sluggish property market, which deserves a valuation premium.</li><li>Maintain BUY with TP at HK$ 9.37, reflecting 13x 2024E PE.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Greentown Management delivered +31% YoY growth in net profit in FY23 and offered a special dividend for the second time that maintained the pay-out ratio at 100%, representing 8% div. yield.We think company’s capability of timely business restructuring supported its consistent delivery of strong performance among sluggish property market, which deserves a valuation premium.Maintain BUY with TP at HK$ 9.37, reflecting 13x 2024E PE.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Greentown Management (9979 HK) - FY23 Results In-Line: >30% NP and 100% Pay-Out

Thematic (Sector/Industry)

<ul><li>NBS property data in 1Q24 remained sluggish but was well expected by the market.</li><li>REI decline widened to 9.5% from -9.0% in 2M24 even though continued base adjustment lowered the number in 1Q23 by 6%. REI was at - 15% if excluding this impact.</li><li>The decline of property sales value narrowed a bit more than decline in sales volume, reflecting a 1.4% hike in ASP as more supply was from higher tier cities with higher ASP in Mar. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NBS property data in 1Q24 remained sluggish but was well expected by the market.REI decline widened to 9.5% from -9.0% in 2M24 even though continued base adjustment lowered the number in 1Q23 by 6%. REI was at - 15% if excluding this impact.The decline of property sales value narrowed a bit more than decline in sales volume, reflecting a 1.4% hike in ASP as more supply was from higher tier cities with higher ASP in Mar. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Property - NBS 1Q24: Weakness Was Well Expected, Expecting More Financing-Side Policies

<ul><li>The Company reported in-line results of +31.3% YoY growth in 1H23 NP, maintaining its good track record of target completion.</li><li>GP margin lifted 1.6ppt YoY to 51.5% from 49.7% in 1H22 due to the revenue structure skewing to capital PJM with higher margin.</li><li>The stock price dropped 6% yesterday mainly because of the significant management changes which increase investors’ concern if the company is going to adopt a business model with heavier assets. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The Company reported in-line results of +31.3% YoY growth in 1H23 NP, maintaining its good track record of target completion.GP margin lifted 1.6ppt YoY to 51.5% from 49.7% in 1H22 due to the revenue structure skewing to capital PJM with higher margin.The stock price dropped 6% yesterday mainly because of the significant management changes which increase investors’ concern if the company is going to adopt a business model with heavier assets. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Greentown Management (9979 HK) – Earnings In-Line

<ul><li>Greentown Management shared on its reverse roadshow that new contract value recorded 21.2% /22.4% YoY growth in 4M23 /1Q23 (in line) and the client structure continues to improve with projects from FIs already contributed 20.7% of total in 1Q23 (vs. 11.7% in 2022).</li><li>We found that demand is holding up high with projects from local SOEs benefit from the effect of “trust by one, trust by more”, and projects from FIs have a chance to sign contact in batches rather than one by one in the future.</li><li>We maintain BUY with TP unchanged at HK$ 9.39 on company’s dominant market share, stable order growth and profit growth, good cash flow and high dividend pay-out ratio.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Greentown Management shared on its reverse roadshow that new contract value recorded 21.2% /22.4% YoY growth in 4M23 /1Q23 (in line) and the client structure continues to improve with projects from FIs already contributed 20.7% of total in 1Q23 (vs. 11.7% in 2022).We found that demand is holding up high with projects from local SOEs benefit from the effect of “trust by one, trust by more”, and projects from FIs have a chance to sign contact in batches rather than one by one in the future.We maintain BUY with TP unchanged at HK$ 9.39 on company’s dominant market share, stable order growth and profit growth, good cash flow and high dividend pay-out ratio.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Greentown Management (9979 HK) – Reverse Roadshow Takeaways

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 28th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Tencent, Bank Of China, China Mobile, Xiaomi, CNOOC.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 28th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent, Bank Of China, China Mobile, Xiaomi, CNOOC.


Hong Kong Connect Flows (Mar 28th): Tencent, Bank Of China, China Mobile, Xiaomi, CNOOC

China

GTMH is a project management company in China with presence in 84 cities across 25 provinces, municipalities, and autonomous regions. It was the largest project management company in China in terms of accumulated contracted GFA between 2016 to 2018.


GreenTown Management Holdings (9979 HK)

Greentown Management (9979 HK) - FY23 Results In-Line: >30% NP and 100% Pay-Out

Greentown Management delivered +31% YoY growth in net profit in FY23 and offered a special dividend for the second time that maintained the pay-out...

CMB International

Property - NBS 1Q24: Weakness Was Well Expected, Expecting More Financing-Side Policies

REI decline widened to 9.5% from -9.0% in 2M24 even though continued base adjustment lowered the number in 1Q23 by 6%. REI was at - 15% if...

CMB International

Greentown Management (9979 HK) – Earnings In-Line

The Company reported in-line results of +31.3% YoY growth in 1H23 NP, maintaining its good track record of target completion.

CMB International

Greentown Management (9979 HK) – Reverse Roadshow Takeaways

We maintain BUY with TP unchanged at HK$ 9.39 on company’s dominant market share, stable order growth and profit growth, good cash flow and high...

CMB International

Hong Kong Connect Flows (Mar 28th): Tencent, Bank Of China, China Mobile, Xiaomi, CNOOC

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for Tencent, Bank Of China, China Mobile, Xiaomi, CNOOC.

Ke Yan, CFA, FRM