[ET Net News Agency, 31 December 2019] CICC Research lifted its target price for
Greentown Service (GS)(02869) by 3% to HK$9.75 and upgraded its rating to "outperform"
from "neutral".
The research house remains upbeat on GS's long-term prospects and believes short-term
pressure from 2019 results has been priced in. CICC believes the introduction of Longfor
Group (00960) as a shareholder will improve sentiment.
CICC believes Longfor's purchase of GS's stake reflects the recognition of GS's quality
fundamentals (e.g. scale, service quality, brand, and community service abilities), and it
should enhance investor confidence in GS.
CICC maintained its forecasts for recurrent net profit (+24%/+29%/30% in 2019/20/21).
(KL)