According to the report by CCB International, they maintain a 'buy' rating on Greentown Services (02869) due to the company's outstanding market expansion capabilities and improvement in efficiency. They have raised the company's core earnings forecast from 11% to 11.6% for the period between this year and 2026. Based on the higher expected profitability, they have also increased the target price for the stock from HK$3.92 to HK$4.36. The management's target is to increase core operating profit by 20%, but the bank maintains a conservative forecast and only predicts a 16.9% increase, leaving room for possible provisions for bad debt.

According to the report, the company's mid-term revenue increased by 10.6% YoY to 9.1 billion yuan, which is in line with the bank's expectations. The revenue from basic property management increased by 14.6% YoY, while the revenue from consultancy and community value-added services increased by 5.3% and 6.1% YoY respectively. The gross margin increased by 0.7 percentage points YoY to 19.2%, surpassing the bank's expectations. The gross margin improved in all departments except for the community value-added services division, which saw a 0.4 percentage point contraction in gross margin due to the impact of the real estate brokerage business. Sales and administrative expenses as a percentage of revenue also decreased by 0.6 percentage points YoY, exceeding the bank's expectations, resulting in a 21.5% YoY increase in net profit, which is higher than the bank's forecast of less than 15% growth.