[ET Net News Agency, 30 December 2019] Greentown Service Group's (02869) chairperson
just agreed to sell a 5% stake to Longfor Group Holdings (00960) while Longfor also
intends to subscribe an additional 5% of Greentown Service's new share before end-1H 2020.
CLSA believes the transactions should create a foundation for the two firms to explore
potential synergy, particularly in community value-added-services (VAS). The chairperson
can also liquidate Rmb980m cash, potentially to support those immature community VAS items
cultivating the listed company, such as funerary services and elderly care.
The research house remains positive on Greentown Service's long-term community VAS
expansion and its premium brand, in addition to potential cooperation with Longfor Smart
Service. CLSA reiterated its "buy" recommendation on Greentown Service, with a target
price of HK$9.9. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00960 LONGFOR GROUP
Nominal 
9.100 -0.100 (-1.087%) Others
30/12/2019 11:54
{I-bank focus}Greentown Service & Longfor to explore synergy
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