Caitong: First to give GREENTOWN MGMT (09979) a "buy" rating, acting as a leading company to deepen its foothold.

Caitong has released a research report stating that they are initiating coverage on GREENTOWN MGMT (09979) with a "buy" rating. The main reasons for this rating include the company's continuous focus on the construction of projects on behalf of others, the establishment of a scale advantage and brand effect, as well as consistently leading the industry in terms of newly developed construction area and sales volume. With a sufficient number of orders in hand, the efficiency of project launches is gradually improving. Caitong's main points are as follows: - Over a decade of focus on construction projects on behalf of others, becoming the first in the industry domestically - The company is a pioneer and leader in the domestic real estate light asset development model. Their core business model includes three main areas of construction projects on behalf of others (government, commercial, and capital), as well as three complementary services (financial services, city-industry services, and industrial chain services). The company was listed on the main board of the Hong Kong Stock Exchange in 2020, becoming the first listed company specializing in construction projects on behalf of others domestically. - Growth in newly developed construction projects despite market downturn, maintaining the top position in the industry - In the first half of 2025, the total construction area of the company's newly developed construction projects increased by 13.9% year-on-year to 19.89 million square meters, ranking first in the industry. The company is committed to quality expansion of scale. In the first half of 2025, the company's expected construction fees for newly developed projects are approximately 5 billion yuan, an increase of 19.1% year-on-year, with the growth rate of construction fees surpassing the growth rate of newly developed areas. - Focus on shareholder returns, first mid-term dividend payout - Since its listing, the company has consistently focused on shareholder returns, with dividend payout ratios exceeding 100% for 2022-2023. In the first half of 2025, the company distributed mid-term dividends for the first time, showing a positive attitude towards shareholder returns. In addition, the company has continued to repurchase shares after the release of mid-term performance, with a cumulative repurchase of 10 million shares amounting to 27.91 million yuan. As of October 28, the repurchased shares have been cancelled. Risk Warning: - Real estate market downturn exceeding expectations, increased competition in the construction industry, risk of defaults by project owners.