[ET Net News Agency, 31 December 2019] Greentown Service Group (GTS)(02869) and Longfor
Group (00960) jointly announced that Longfor would own 10% of GTS and act as a long-term
financial investor upon completion of the stake purchase.
Goldman Sachs said both parties have not announced a concrete plan for potential
cooperation. Neither did the research house expect synergies as Longfor would mainly act
as a long-term financial investor.
Goldman does not incorporate the proposed new share subscription into its model as the
deals have yet to be completed. Its 2019-2021 EPS and target price of HK$10.4 are
unchanged.
With the stock is trading at 36x/24x/19x 2019-21 P/E versus peers' average of
34x/25x/19x, Goldman considers GTS's valuation relatively fair and reflective of its
high-quality property management services and pioneer position in VAS; the research house
remains "neutral". (KL)
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02869 GREENTOWN SER
Nominal 
3.180 +0.040 (+1.274%) Others
31/12/2019 17:25
{I-bank focus}No synergies seen from Greentown/Longfor deal
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