The Zhitong Finance App learned that Greentown China (03900) fell by more than 14%. As of press release, it was down 14.75% to HK$6.475, with a turnover of HK$311 million.
According to the news, recently, Greentown China announced its 2026 interim results, with revenue of about 39.481 billion yuan, a year-on-year decrease of 26.02%; profit attributable to company owners was 81.755 million yuan, a year-on-year decrease of 61.07%; and profit per share was 0.03 yuan. According to the announcement, the decrease in profit was mainly affected by the year-on-year decline in the Group's carry-over area and average price in the first half of the year, leading to a decrease in revenue. At the same time, since the real estate market is still in an adjustment period and the company continues to actively promote long-term inventory removal in order to promote long-term development, the gross margin of revenue carry-over declined in the current period.
Damo released a research report saying that Greentown China's interim results reflect continued pressure to remove inventory, and gross margin for property development was lower than expected. Coupled with slow accounting progress, the core profit forecasts for the 2026 and 2027 fiscal years were lowered by 14% and 13% respectively. It is expected that Greentown China's stock price will fall by more than 80% within the next 30 days. Damo maintains Greentown China's “holdings reduction” rating. It believes that the company's profit recovery prospects are slower than expected. Although the pressure to remove inventory has been reduced, it is still significant. The group's prudent land reserve strategy and recent management changes will affect contract sales performance this year and next two years.