Lyon: Greentown Services (02869)'s performance in the first half of the year met expectations and maintained a “outperforming the market” rating

The Zhitong Finance App learned that Lyon released a research report stating that it maintains the Greentown Service (02869) “outperforms the market” rating and target price of HK$5.5. Lyon indicated that Greentown Services' performance in the first half of the year was in line with the bank's expectations. Despite the industry's challenges, its property services business has remained resilient, benefiting from the steady expansion of total managed floor area, and average costs have increased slightly in the face of industry price competition. Continued profit margin improvements have enabled profits to grow faster than revenue. This marks the fourth consecutive year of expansion in profit margins, demonstrating management's strong execution. The bank expects Greentown Services to continue to be one of the companies with the most clear performance growth in the industry due to its strong brand and relatively resilient customer affordability.