Core Insights - The company showcased its core competitiveness through the successful management of the Guihu Yun Cui project, which was taken over by China Great Wall Asset Management after the previous developer faced financial issues [1] - The project achieved a cumulative sales rate of 65% since its launch in December 2024, with subsequent price increases for new offerings, indicating strong market acceptance [1] - The company reported a 19% year-on-year increase in new contract value for the first half of 2025, reaching 5 billion, suggesting a positive trend in business expansion [2] Financial Performance - The company's revenue for 2024 is projected at 3.44 billion, with expectations of narrowing the gap between revenue and new contract value due to improved project quality and reduced project sizes [2] - Operating cash flow for the first half of 2025 showed a significant improvement, with a ratio of 44% to net profit compared to 15% in the same period last year, indicating better cash management [2] - The company has actively repurchased shares, totaling 1,000 shares or 0.5% of total equity, and the CEO increased his stake by purchasing 500,000 shares, reflecting a strong commitment to shareholder returns [2] Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 remain unchanged, with a target price set at 3.2 HKD, corresponding to a 12x price-to-earnings ratio for 2025 and an expected dividend yield of 8% [2] - The company is currently trading at a 11.6x price-to-earnings ratio for 2025, with an expected dividend yield of 8.7%, indicating potential upside [2]

Core Viewpoint - CICC maintains the profit forecast for Greentown Management Holdings (09979) for 2025 and 2026, with a target price of HKD 3.2, corresponding to a 12x P/E ratio for 2025 and an 8% expected dividend yield, indicating a 6% upside potential [1] Group 1: Project Performance - The Guihu Yuncui project highlights the core competitiveness of the company, as it was selected by China Great Wall Asset to manage the project amidst financial difficulties faced by the previous developer, achieving a cumulative sales rate of 65% since its launch in December 2024 [2] - The project has received high recognition from the client, Great Wall Asset, leading to ongoing exploration of further project collaborations nationwide [2] Group 2: Operational Trends - In the first half of 2025, the company’s new contract value increased by 19% year-on-year to RMB 5 billion, with expectations for continued positive momentum throughout the year [3] - The company’s operating cash flow to net profit ratio improved to 44% in the first half of 2025, up from 15% in the same period last year, indicating a favorable trend that is expected to continue into the second half of 2025 [3] Group 3: Shareholder Returns - Following the release of mid-term results, the company has actively repurchased shares, totaling 10 million shares, which is 0.5% of the total share capital [4] - The company’s dividend policy remains positive, with expectations to maintain a similar dividend per share in 2025 as in 2024, implying an expected dividend yield of 8.7% for 2025 [4]