Bank of America Securities Upgrades Greentown Service to "Buy" Rating, Citing Resilience to Industry Pricing Pressures

Stock News
02/04

Bank of America Securities has released a research report stating that Greentown Service (02869), with its high-quality service capabilities, is well-positioned to withstand the pricing and fee pressures currently facing the mainland property management industry. This strength is expected to position the company as a long-term beneficiary during the ongoing market consolidation. Furthermore, potential stimulus measures for the real estate sector could improve investor sentiment towards the property management segment. Consequently, the brokerage has upgraded its rating on Greentown Service from "Neutral" to "Buy," raising its target price by 20% to HK$6. The report highlights that Greentown Service's current valuation is attractive, with a projected compound annual growth rate in earnings per share of 10% for the 2026 to 2028 period. Additionally, the company is actively returning value to shareholders; besides conducting share buybacks, it offers a forecasted dividend yield of 5% to 6% for 2025 and 2026, based on a payout ratio of 70% to 75%.

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