Elevator Pitch
I am negative on Hong Kong-listed Mainland China property developer Greentown China Holdings, Ltd. (GTWCF) [3900:HK], due to its weak earnings and contracted sales, high land costs for newly-acquired land bank, its relatively high adjusted net gearing, and its future diversification plans.
Greentown China trades at 5.1 times consensus forward FY2019 P/E, representing a discount to its historical five-year average forward P/E of approximately 6 times. The stock is valued by the market at 0.32 times P/B versus its historical five-year average P/B of approximately 0.5 times. It also offers a