By Clarence Leong
Shares of Greentown Management Holdings Co. rose after the company posted a 33% jump in profit for the first six months.
The Chinese company’s stock rose as much as 10% in Thursday morning trade in Hong Kong. It was last up 4.7% at HK$6.30, taking year-to-date gains to 20%.
The Hangzhou-based property development manager’s first-half net profit rose to 360.8 million yuan (US$53.4 million) from CNY270.4 million a year earlier, it said in a filing late Wednesday.
Revenue climbed 16% to CNY1.26 billion.
Analysts at Citigroup said in a note that Greentown Management’s strong performance “further solidifies its outlook” for profit growth and market-share gains. The US bank reaffirms its buy rating on the stock with a target price of HK$8.12.
During the period, the company’s revenue from government-project management advanced 74% to about CNY381 million, which it partly attributed to Beijing’s “common prosperity” drive. It said the policy has ushered in changes in China’s real-estate market, with an expansion of government services and a surge in land acquisitions by local state-owned enterprises.
Hong Kong’s benchmark Hang Seng Index was recently up 0.2% at 20710.67.
Write to Clarence Leong at [email protected]
Credit: www.marketwatch.com /