- July 16, 2020
- We believe the recent listing of Greentown Management (9979.HK, NR) on the HKEX offers investors insight into the deep value hidden in CCRE’s asset light business.
- If we mark-to-market CCRE’s asset light business with Greentown’s IPO valuation, we believe this implies that CCRE’s heavy asset business is trading at a deeply discounted valuations of 3.1x 2020E P/E.
- If one day CCRE decides to spin-off the asset light business at 15.6x 2019 P/E valuation, we estimate it will fetch a RMB2.7bn valuation, and implying it will be adding 19% to CCRE’s current market cap.
