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>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

Thematic (Sector/Industry)

<ul><li>NBS data in Oct was in line with market expectation, with property investment decline remaining at -11.3% YoY in Oct (vs. -11.3% in Sep) despite a lower base.</li><li>Property sales also weakened with volume/value declining 28/26% MoM and showing larger divergence between high- and low-tier cities.</li><li>We think Nov-Dec 2023 may continue to be weak as the buying sentiment remains low and is hard to be lifted with the marginally weakening effect from easing policies. </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 data in Oct was in line with market expectation, with property investment decline remaining at -11.3% YoY in Oct (vs. -11.3% in Sep) despite a lower base.Property sales also weakened with volume/value declining 28/26% MoM and showing larger divergence between high- and low-tier cities.We think Nov-Dec 2023 may continue to be weak as the buying sentiment remains low and is hard to be lifted with the marginally weakening effect from easing policies. 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.

China Property Sector – NBS Oct Data in Line

<ul><li>Company’s +32% YoY earnings growth in 2022 slightly beat the market expectation.</li><li>Double surprises come from a special dividend which pushes the payout ratio to 100% in 2022, and a lift of future payout ratio to 80% (vs.60% originally).</li><li>This boosted the share price by 3% against the HSI (-3%) yesterday. </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.

Company’s +32% YoY earnings growth in 2022 slightly beat the market expectation.Double surprises come from a special dividend which pushes the payout ratio to 100% in 2022, and a lift of future payout ratio to 80% (vs.60% originally).This boosted the share price by 3% against the HSI (-3%) yesterday. 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 Beat with Double Surprises on Dividend Payout

<ul><li>PJM demand in 4Q22 was weaker than 4Q21 as two major players (took c.35% of mkt share) in total booked 7% YoY decline in newly-contracted GFA (Figure 1).</li><li>Full year performance was diverged that Greentown Mgmt. booked 21% YoY growth in service fee (beat 1%) but CCM plunged 66% YoY on new contract GFA (completed 48% of the target).</li><li>Our main findings are 1) SMDs keep cutting land investment among sluggish property sales and their PJM order contribution dropped sharply (Figure 2). </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.

PJM demand in 4Q22 was weaker than 4Q21 as two major players (took c.35% of mkt share) in total booked 7% YoY decline in newly-contracted GFA (Figure 1).Full year performance was diverged that Greentown Mgmt. booked 21% YoY growth in service fee (beat 1%) but CCM plunged 66% YoY on new contract GFA (completed 48% of the target).Our main findings are 1) SMDs keep cutting land investment among sluggish property sales and their PJM order contribution dropped sharply (Figure 2). 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.

China Project Management Sector – Prefer defensive Greentown Mgmt. over demotivated CCM

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) – 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

China Property Sector – NBS Oct Data in Line

NBS data in Oct was in line with market expectation, with property investment decline remaining at -11.3% YoY in Oct (vs. -11.3% in Sep) despite a...

CMB International

Greentown Management (9979 HK) – Earnings Beat with Double Surprises on Dividend Payout

Double surprises come from a special dividend which pushes the payout ratio to 100% in 2022, and a lift of future payout ratio to 80% (vs.60%...

CMB International

China Project Management Sector – Prefer defensive Greentown Mgmt. over demotivated CCM

PJM demand in 4Q22 was weaker than 4Q21 as two major players (took c.35% of mkt share) in total booked 7% YoY decline in newly-contracted GFA...

CMB International