Shares of Greentown Management Holdings Co. surged by as much as nearly 10% in Hong Kong, before closing morning session on Thursday 4.5% higher at HK$6.29.
The Hangzhou-based property development manager’s first-half net profit jumped by 33% on year to 360.8 million yuan ($53.4 million) from 270.4 million yuan a year earlier, it said in a filing late Wednesday. Revenue climbed 16% to 1.26 billion yuan.
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 381 million yuan, 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.
