Greentown Management (9979.HK) Q3 2024 Earnings Report

Greentown Management Holdings Company Limited reported QQ3 2024 revenue of 885.8 million CNY, with a gross profit of 422.7 million CNY and a gross margin of 47.7%. Despite a top-line expansion versus the prior year period (YoY revenue growth of 1.04%), net income declined 40.0% YoY to 149.98 million CNY, reflecting higher operating expenses and a more challenging margin mix. On a QoQ basis, revenue rose 6.11% and net income declined 40.15%, underscoring seasonality and the cyclicality characteristic of Chinese real estate services as project activity fluctuates during the calendar year.

Greentown posted a robust cash generation profile for QQ3 2024, with net cash provided by operating activities of 107.1 million CNY and free cash flow of 102.1 million CNY. The balance sheet remains conservatively financed, showing a strong cash position (cash and cash equivalents of 1.519 billion CNY) and an overall net cash position (net debt of -1.508 billion CNY). The company paid a substantial dividend of 494.3 million CNY in the period, contributing to a high reported dividend payout ratio and reflecting a capital allocation policy that prioritizes returning capital to shareholders alongside maintaining liquidity reserves.

Looking ahead, the QQ3 2024 results imply solid operating profitability even as reported earnings are pressured by the property cycle and cost pressures. The business appears to benefit from Greentown’s diversified project-management footprint (commercial, governmental, and others) and from potential opportunities within the broader public infrastructure and resettlement programs. However, upside will depend on stabilization or improvement in the Chinese property market, government project pipelines, and the ability to monetize backlog while preserving margin discipline. Investors should monitor policy developments, project win rate, and the company’s ability to translate backlog to revenue with favorable cost control.