[ET Net News Agency, 27 April 2020] Huatai Research noted that Greentown Service Group
(GTS)(02869) issued a total of 155mn shares to Longfor Group (00960) on 24 April. After
the share issuance, Longfor will hold 10% of GTS's shares, making it the largest external
shareholder of GTS.
The research house thinks the completion of share issuance to Longfor secures long-term
support for GTS, given that GTS lacked a strong property developer to direct projects to
its pipeline.
That said, Huatai does not expect any major cooperation on the operational front between
GTS and Longfor in the near term. It thus maintained its "hold" call on GTS with a target
price unchanged at HK$9.1. (KL)