Greentown Management delivered +31% YoY growth in net profit in FY23 and offered a special dividend for the second time that maintained the pay-out ratio at 100%, representing 8% div. yield. We think company's capability of timely business restructuring supported its consistent delivery of strong performance among sluggish property market, which deserves a valuation premium. Maintain BUY with TP at HK$ 9.37, reflecting 13x 2024E PE.

NP +31% YoY, maintained 100% div. pay-out. Company reported attributable NP of RMB 974mn in FY23, +31% YoY, in-line with our forecast given its effective operational cost control resulted in a decrease in SG&A fee as % of revenue (excl. D&A) (16% in FY23 vs. 20% in FY22) and lower effective tax rate (17% in FY23 vs. 20% in FY22) as more subsidiaries obtained "high-tech enterprise certification" that subjected to lower tax rate. GP margin was stable at 52% with that for commercial PJM decreased 2ppt to 52% as services scope was expanded for certain projects which requires assistance from third parties. GP margin for government PJM improved 4ppt to 45% due to optimized staff evaluation mechanism. Investors felt comforting about the special dividend that maintained a 100% pay-out ratio amid the lacklustre market.

Guided industry-leading growth in next three years. Company guided +20% and +25% CAGR for revenue and NP in next three years, which may outperform most companies in broader property market. We are positive on company's ability to achieve this target as 1) +20% CAGR for revenue equals to c.RMB15bn revenue in total for FY24-26E, while company currently has billable contract value of RMB 25bn which does not include a new increase of c.RMB10bn each year. The dividend pay-out ratio was guided at 80%.

Remarkable adaptability deserves attention. Company once again kept its good record on target completion despite the bleak property market condition. We think the company's agility in adjusting business structure played a crucial role. Company stepped into PJM for FIs and LGFVs in FY22 since demand from SMDs decreased, and it further increased its effort in "home delivery guarantee" in FY23 to align with policy directives. As residential market is contracting, company also expanded business to non- residential project which accounted for 15% of its new contact in FY23.

Maintain BUY with TP at HK$9.37. We like company by its asset-light model, high cash flow and high dividend yield (8% as of last trading day) as well as repeatedly validated target achievement capability. Our new TP of HK$ 9.37 reflecting 13x 2024E PE. Risks: property sales drop, LGFV default.