20230831-招银国际-绿城服务-02869.HK-1H23_results_in-line,_visible_recovery_in_owner_VAS_5页

Greentown Service's 2023 first-half results indicate a 20% year-on-year increase in both revenue and core operating profit, aligning with market forecasts. The gross profit margin declined to 18.7%, primarily due to lower profitability in non-owner value-added services (VAS) amid developer expense cuts, though basic PM margins remained stable despite industry headwinds. However, SG&A expenses improved due to organizational optimizations. Community VAS segment showed significant recovery with 26.5% revenue growth, fueled by growth in home living services and housing brokerage. Cash flow turned positive due to active accounts receivable management, with operating cash flow expected to cover 1x net profit for fiscal year 2023. Analysts maintain a BUY recommendation based on high operational independence, stable parent company, and progress in VAS exploration, despite risks like slower third-party expansion.