Morgan Stanley has lowered its 2024 core profit forecast for Greentown Services (02869) by 6%, but raised its forecasts for 2025 and 2026 by 1% and 3%, respectively.
According to the report by Morgan Stanley, the target price of Greentown Services (02869) has been raised by 1.6% from HK$4.38 to HK$4.45, and the 'shareholding' rating has been maintained.
The bank pointed out that the adjustment of profit forecast reflects the better execution of the management team and the withdrawal of some loss-making businesses, resulting in better-than-expected operating margin. The bank has lowered its 2024 core profit forecast by 6%, but raised its forecasts for 2025 and 2026 by 1% and 3%, respectively.
The basic assumption for the company is that the total sales gross floor area (GFA) will remain stable (mainly due to third-party GFA expansion), the average selling price (ASP) will also remain stable, and the operating margin will normalize.