GREENTOWN CHINA

Greentown China fell 0.83% to HK$7.13 today, with notable intraday divergence: a morning surge from HK$7.02 to HK$7.32 at 10:43 was followed by steady decline to the close. The market initially reacted positively to recent leadership changes, with Zhao Hui taking the helm as chairman and CEO on July 22, succeeding Liu Chengyun, but afternoon profit-taking erased gains. Fundamental headwinds limit recovery: June self-invested project sales plummeted ~20% year-over-year to RMB11.4 billion, while Q3 and Q4 both posted net losses (Q4 loss HK$77.24 million, net margin -13.67%). First-half revenue reached RMB94.7 billion (+19.35% YoY) but operating profit declined 4.27% YoY, signaling margin compression. Hong Kong's anti-corruption agency's investigation into a former deputy general manager also clouds sentiment on governance. Year-to-date, the stock has dropped 14.92%, trading 40.48% below its 52-week high of HK$11.98, maintaining a depressed valuation.

Greentown China closed at HKD 7.19, down roughly 2% from prior close, after morning strength to HKD 7.51 gave way to afternoon weakness, pressured by deteriorating sales data. June self-investment project sales fell 20% year-over-year to RMB 11.4 billion, while first-half preliminary sales of RMB 94.7 billion show notably slowed growth, reflecting weak housing market demand. Financial results remain challenged—Q4 and Q3 both posted net losses of HKD 772 million and HKD 759 million respectively, though losses narrowed over 65% year-over-year, with net margin still deeply negative at -13.67%. New chairman Zhao Hui, appointed in early March, faces mounting pressure to reverse the sales decline. On valuation, the stock has fallen nearly 40% from its 52-week high of HKD 11.98 and trades just above its 52-week low of HKD 6.30 (up 14%), carrying a compressed price-to-book ratio of 0.47, yet persistent losses and sales deceleration make the low valuation an insufficient draw for new capital.

Greentown China declined 0.55% to HK$7.16, with the morning session peaking at HK$7.25 around 09:59 before retreating to a low of HK$7.07 at 11:01, and the afternoon session recovering to HK$7.17 at 15:17 without fully retracing losses. Multiple headwinds have pressured the stock recently: Zhao Hui assumed the chairman and CEO role in late April following Liu Chengyun's departure; Hong Kong's Independent Commission Against Corruption (ICAC) searched the company's office in mid-May in connection with a former executive probe; and June self-developed project sales dropped 20% year-on-year to RMB1.14 billion. Despite H1 sales reaching RMB94.7 billion, the company reported consecutive quarterly losses of approximately RMB77 million each in Q4 and Q3, with EPS of -0.03 per share. The stock has fallen 14.56% year-to-date from HK$8.38 and is down 40% from its 52-week high of HK$11.98, trading significantly below the 60-day moving average of HK$8.30, as ongoing profit deterioration and management transition strain investor confidence.

Greentown China (3900.HK) closed at HKD 7.20, up 2.86% from the previous close of HKD 7.00. The morning session (09:30-11:59) saw the strongest momentum, reaching an intraday high of HKD 7.26 representing a 3.7% gain, before the afternoon session (13:00-16:00) pared gains modestly while maintaining the advance, closing at HKD 7.20. The rally was primarily driven by management changes announced on July 23—Zhao Hui officially assumed the Chairman and CEO roles, replacing departing Liu Chengyun, with investors hopeful the new leadership could drive business turnaround. However, the fundamentals remain under pressure: Q4 2025 operating revenue grew 19.35% year-over-year to HKD 56.49 billion, but net profit continued losses, operating profit declined 4.27% year-over-year, and net margin turned negative at negative 13.67%, signaling deteriorating profitability. June self-investment project sales slumped over 20% year-over-year, reflecting challenging real estate market conditions. From a valuation perspective, the stock has fallen 39.9% from its 52-week high of HKD 11.98 in February and now trades near relative lows, though it has bounced 14.29% from the June low of HKD 6.30, suggesting some stabilization recently.

Greentown China declined approximately 6.3% to close at HK$7.0, driven by overlapping pressures from management transition and deteriorating fundamentals. The company recently disclosed its board composition with Zhao Hui assuming the role of chairman and chief executive officer, prompting investors to reassess risks during the leadership transition period. Financially, Q3 and Q4 results show consecutive losses with EPS of -0.0299 and -0.0304 HKD respectively; June self-investment project sales fell roughly 20% year-over-year to RMB 11.4 billion, while H1 contracted sales reached RMB 94.7 billion. Technically, the stock has declined 41.6% from its 52-week high of HK$11.98 and is down 16.5% year-to-date, touching an intraday low of HK$6.96 near recent support levels. Trading at 0.46x PB suggests relative valuation discount, though persistent operating losses and weakening sales momentum remain material headwinds.