Greentown Management (9979.HK) Q4 2024 Earnings Report

Revenue and profitability dynamics:
- Revenue: 885.801 million CNY; YoY change: +1.04%; QoQ change: 0.00% (as provided). Interpretation: Modest top-line growth amidst a mixed macro backdrop for Chinese real estate services.
- Gross Profit: 422.711 million CNY; YoY change: -7.72%; QoQ: 0.00%. Interpretation: Margin intact at 47.7%, but gross profit declined in absolute terms due to mix or cost pressures within the period.
- Gross Margin: 47.72% (0.4772070702).
- Operating Income: 224.934 million CNY; YoY change: -18.47%; QoQ: 0.00%. Interpretation: Operating leverage remains positive but there is a YoY compression in profitability, potentially driven by higher operating expenses.
- Net Income: 149.978 million CNY; YoY change: -40.01%; QoQ: 0.00%. Interpretation: Bottom-line pressure despite stable revenue signals; reflects higher expense base or non-operating costs.
- EPS: 0.0751 CNY; YoY change: -37.42%; QoQ: 0.00%. Interpretation: Relatively steady share count but lower earnings per share due to profit mix.
Cash flow and balance sheet:
- Net cash from operating activities: 107.094 million CNY.
- Free Cash Flow: 102.089 million CNY.
- Cash and equivalents: 1,518.287 million CNY.
- Net debt: -1,507.842 million CNY (net cash position).
- Dividends paid (financing activities): -494.313 million CNY.
- Total assets: 6,776.769 million CNY; Total liabilities: 2,835.188 million CNY; Total stockholders’ equity: 3,810.170 million CNY.
- Current ratio: 1.684; Quick ratio: 1.684; Cash ratio: 0.543. Interpretation: Solid liquidity metrics and a healthy balance sheet with net cash support, though sizable dividend payments contributed to financing outflows.
- Receivables: 2,931.150 million CNY; Total current assets: 4,705.067 million CNY; Total current liabilities: 2,793.700 million CNY. Interpretation: Working capital is adequate to support ongoing project management activities.
Valuation and efficiency:
- P/E: 10.32x; P/BV: 1.626x; P/S: 6.99x; EV/EBITDA: 18.34x. Interpretation: Valuation sits in the middle range for property services peers given robust margins and net cash; higher EV/EBITDA reflects cash generation and growth prospects embedded in the multiple.
- Asset turnover: 0.131x; Fixed asset turnover: 9.52x; Receivables turnover: 0.302x; Payables turnover: 4.74x. Interpretation: Asset-light business model characteristic of project management and construction/consulting services; high fixed asset turnover reflects project-based service mix.
- Gross margin 47.7% vs. peer group margins typically lower (peers in the 16%-30% range in the provided dataset) suggesting Greentown’s service mix and pricing power are favorable in QQ4 2024.