Investment Rating - The report maintains a "Buy" rating for Greentown Service (02869.HK) [2] Core Views - The company achieved a revenue of 17.39 billion RMB in 2023, a year-on-year increase of 17.1%, and a net profit attributable to shareholders of 605 million RMB, up 10.6% year-on-year, meeting market expectations [2][3] - The dividend payout ratio increased to 73%, reflecting a 21 percentage point rise from the previous year [2] - The company’s managed area grew by 17% year-on-year, with third-party management accounting for 84% of the total [2] - Greentown Service is recognized for its service quality and has a strong ability to raise property management fees, which contributes to stable long-term profit margins [2] Financial Performance Summary - Revenue for 2023 was 17,393 million RMB, with a year-on-year growth rate of 17.1% [3] - The net profit for 2023 was 605 million RMB, with a year-on-year growth rate of 10.6% [3] - The earnings per share (EPS) for 2023 was 0.19 RMB, an increase of 11% year-on-year [2][3] - The gross profit margin and net profit margin were 16.8% and 3.5%, respectively, with slight changes from the previous year [2] - The company plans to distribute a dividend of 0.15 HKD per share, corresponding to a dividend payout ratio of 73% [2] Revenue Breakdown - Property service revenue increased by 18% year-on-year, while park service revenue rose by 25% [2] - The revenue from property services, park services, consulting services, and technology services for 2023 was 111.0 million RMB, 35.7 million RMB, 23.0 million RMB, and 4.3 million RMB, respectively [2] - The gross profit margins for property services, park services, consulting services, and technology services were 13.0%, 21.5%, 23.4%, and 38.7%, respectively, with improvements noted in property and park services [2] Future Earnings Forecast - The report forecasts earnings per share of 0.22 RMB for 2024, 0.25 RMB for 2025, and 0.28 RMB for 2026 [3][5] - Revenue is projected to reach 20.16 billion RMB in 2024, with a growth rate of 15.8% [3] - The net profit is expected to grow to 700 million RMB in 2024, reflecting a year-on-year increase of 15.6% [3]
业绩稳增，利润率修复，分红率提升