Exchange: HKSE | Sector: Real Estate | Industry: Real Estate Services
Q2 2025
Published: Jun 30, 2025
Earnings Highlights
Revenue of $687.13M up 55.1% year-over-year
EPS of $0.06 increased by 72.6% from previous year
Gross margin of 40.0%
Net income of 128.06M
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Greentown Management Holdings Company Limited (9979.HK) QQ2 2025 Results Analysis â Real Estate Services with Margin Strength, Low Leverage and Pipeline Backing Growth
Executive Summary
Greentown Management reported solidQQ2 2025 top-line momentum with a revenue of 687.13 million CNY and a robust gross margin of 40.04%. The company posted an operating margin of 22.38% and a net margin of 18.64%, generating net income of 128.06 million CNY and EPS of 0.0648 for the quarter. Year-over-year advances are evident across key profitability metrics: revenue up 55.14%, gross profit up 30.19%, operating income up 36.70%, net income up 70.77%, and EPS up 72.57%. The quarterly figures imply meaningful margin stability in a services-led model with limited capital investment.
Key Performance Indicators
Revenue
687.13M
QoQ: 100.00% | YoY:55.14%
Gross Profit
275.16M
40.04% margin
QoQ: 100.00% | YoY:30.19%
Operating Income
153.75M
QoQ: 100.00% | YoY:36.70%
Net Income
128.06M
QoQ: 100.00% | YoY:70.77%
EPS
0.06
QoQ: 100.00% | YoY:72.57%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 687.13 million CNY; YoY growth +55.14%; QoQ data appears inconsistent with the cited 100% QoQ growth for several line items, suggesting a dataset alignment issue (revenue shown flat vs prior quarter in QQ2 2025). - Gross Profit: 275.16 million CNY; Gross margin: 40.04%; YoY +30.19% and QoQ +100% (dataset anomaly noted). - Operating Income: 153.75 million CNY; Operating margin: 22.38%; YoY +36.70%; QoQ ~100% (data misalignment risk). - Net Income: 128.06 million CNY; Net margin: 18.64%; YoY +70.77%; EPS: 0.0648; YoY +72.57%. - EBITDA: 172.44 million CNY; EBITDA margin: 25.10%. - Balance sheet: Debt ratio 0.12%, cash ratio 0.535, company equity multiplier ~1.91, ROA 3.74%, ROE 7.13%, ROCE 8.13%. - Cash flow: Operating cash flow per share and free cash flow per share are reported as 0, while cash per share is 0.832; CFO/CFI signals require working-capital assessment. - Valuation: P/E ~5.21x, P/B ~1.48x, EV/EBITDA ~10.72x; price-to-sales ~3.88x; dividend yield 0%.
Financial Highlights
- Revenue: 687.13 million CNY; YoY growth +55.14%; QoQ data appears inconsistent with the cited 100% QoQ growth for several line items, suggesting a dataset alignment issue (revenue shown flat vs prior quarter in QQ2 2025). - Gross Profit: 275.16 million CNY; Gross margin: 40.04%; YoY +30.19% and QoQ +100% (dataset anomaly noted). - Operating Income: 153.75 million CNY; Operating margin: 22.38%; YoY +36.70%; QoQ ~100% (data misalignment risk). - Net Income: 128.06 million CNY; Net margin: 18.64%; YoY +70.77%; EPS: 0.0648; YoY +72.57%. - EBITDA: 172.44 million CNY; EBITDA margin: 25.10%. - Balance sheet: Debt ratio 0.12%, cash ratio 0.535, company equity multiplier ~1.91, ROA 3.74%, ROE 7.13%, ROCE 8.13%. - Cash flow: Operating cash flow per share and free cash flow per share are reported as 0, while cash per share is 0.832; CFO/CFI signals require working-capital assessment. - Valuation: P/E ~5.21x, P/B ~1.48x, EV/EBITDA ~10.72x; price-to-sales ~3.88x; dividend yield 0%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
687.13M
55.14%
100.00%
Gross Profit
275.16M
30.19%
100.00%
Operating Income
153.75M
36.70%
100.00%
Net Income
128.06M
70.77%
100.00%
EPS
0.06
72.57%
100.00%
Key Financial Ratios
currentRatio
1.55
grossProfitMargin
40%
operatingProfitMargin
22.4%
netProfitMargin
18.6%
returnOnAssets
3.74%
returnOnEquity
7.13%
debtEquityRatio
0
priceToBookRatio
1.48
priceEarningsRatio
5.21
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings-call transcript was supplied in the data. Consequently, there are no management quotes or thematic highlights to extract from an official QQ2 2025 call.
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Forward Guidance
No explicit numeric guidance was disclosed in the provided data. Nevertheless, the business model centers on PRC project management for commercial, governmental, and other segments, which often benefits from government infrastructure and urban development initiatives. Given the margin resilience (gross ~40%, operating ~22%) and a very modest leverage profile, Greentown Management could sustain mid-to-high single-digit revenue growth if the pipeline remains robust and receivables timing normalizes. Key factors to monitor include: (1) government project award cadence and payment terms; (2) working-capital efficiency (DSO in the 116-day range suggests working-capital intensity); (3) mobilization costs and utilization of project management resources; (4) any shifts in public infrastructure budgets or regulatory changes affecting project timing.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
9979.HK Focus
40.04%
22.40%
7.13%
5.21%
9983.HK
21.20%
10.70%
5.62%
3.14%
2869.HK
19.50%
8.64%
7.95%
5.12%
6049.HK
19.40%
14.00%
9.02%
4.67%
9909.HK
31.20%
19.20%
5.37%
1.77%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Greentown Management presents a defensively positioned, asset-light real estate services company with strong profitability margins and a very low leverage profile. The QQ2 2025 results demonstrate meaningful YoY improvement in revenue and profitability, led by a favorable project mix and efficient cost controls. However, the measurement of cash generation remains ambiguous given CFO/FCF data, underscoring the importance of monitoring working-capital dynamics and receivables collection in subsequent quarters. Valuation appears reasonable relative to peers (P/E ~5.2x, P/B ~1.5x, EV/EBITDA ~10.7x) for a niche PRC project-management specialist with steady government-related visibility. The primary upside hinges on a sustained pipeline of government and commercial infrastructure projects, while the key downside risks are policy/budget shifts, macro slowdowns, and working-capital headwinds. Investors should watch: (1) quarterly cadence of government project awards and payments, (2) trend in DSO and working capital, (3) pipeline conversion rate into revenue, and (4) any changes to tendering and procurement regulations that could affect margins.
Key Investment Factors
Growth Potential
Strong pipeline in Commercial and Governmental project management with potential cross-segment expansion and scale across PRC markets. Margin resilience supports continued profitability even with modest revenue growth.
Profitability Risk
High receivables days (DSO ~116 days) signaling working-capital intensity; policy/regulatory risk in PRC real estate and infrastructure budgets; revenue concentration in government projects could introduce cadence risk; very low debt reduces financial flexibility for capex if required.
Financial Position
Low leverage with debt ratio ~0.12%, cash ratio ~0.54, and company equity multiplier ~1.91. Healthy gross margin (~40%) and solid operating margin (~22%) support earnings stability; however, CFO/FCF signals are ambiguous, suggesting potential working-capital-driven cash flow dynamics.
SWOT Analysis
Strengths
Strong gross margin (40.0%) and solid operating margin (22.38%) indicating pricing power and efficient project management execution.
Healthy net margin (18.64%) with positive net income and EPS in QQ2 2025.
Low leverage profile (debt ratio ~0.12%, debt capitalization ~0.23%).
Diversified segments (Commercial, Governmental, and Others) reducing concentration risk.
Cash per share of 0.832 signals liquidity cushion despite ambiguous CFO signals.
Weaknesses
Receivables days outstanding (DSO) around 116 days indicating potential working-capital intensity and collection risk.
Cash flow indicators (operating cash flow per share and free cash flow per share) reported as zero, suggesting possible working-capital or non-cash timing effects.
Revenue scale is relatively modest versus larger C-end peers, potentially limiting scale benefits and market visibility.
Opportunities
Growth from PRC government infrastructure and resettlement housing management projects.
Cross-selling opportunities across Commercial, Governmental, and public-infrastructure projects.
Potential efficiency gains from digital workflow adoption and process optimization in project management.
Threats
Policy shifts affecting real estate and infrastructure project funding in China.
Economic slowdown or liquidity tightening could delay project awards or payment cycles.
Competitive pressure from larger integrated service providers and other specialized project-management firms.
Regulatory changes impacting government procurement and tendering processes.
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