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Investing.com - UBS has upgraded Greentown Service Group Co Ltd (HK:2869) from Neutral to Buy while raising its price target to HK$5.70 from HK$4.50.
The upgrade comes as UBS views Greentown Service, an independent property manager, as better positioned than competitors backed by developers. The firm cited four key advantages: strong ability to win third-party contracts, flexibility to terminate less profitable projects, reduced risk of cash flow leakage to related developers, and lower impairment risk.
UBS has increased its 2025-27 earnings estimates for Greentown Service by 0-16%, projecting an earnings compound annual growth rate of 19%. The new price target is based on a 15.0x price-to-earnings ratio for 2026 estimates.
For the first half of 2025, UBS expects Greentown Service to achieve 20% earnings growth driven by double-digit property management growth and improvements in both margins and selling, general, and administrative expenses.
The stock’s independent status appears to be a significant factor in the positive outlook, distinguishing it from other listed property managers in the sector that maintain developer affiliations.
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