[ET Net News Agency, 7 November 2019] Jefferies Research maintained its target price
for Shimao Property (00813) unchanged at HK$28.17 but downgraded its rating to "hold" from
"buy" as it views the current valuation to be fair.
The research house said Shimao's share price has outperformed the sector by 13ppt since
October on the back of expected good 4Q sales and stronger RMB (60% of borrowings are in
USD/HKD). Although chase momentum may last for a while longer, Jefferies believes the
current share price already prices in too much optimism towards company fundamentals.
It said Shimao is currently trading at 6.3x 12-month forward P/E, which is close to
COLI's (00688) and Vanke's (02202) valuation. Jefferies believes this is unjustified given
Shimao's weaker financial health and track record. It also believes the potential
placement risk is a near-term share price overhang despite management stating that it is
not considering placement at current valuation. (KL)
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00813 SHIMAO GROUP
Nominal 
0.540 +0.040 (+8.000%) Others
07/11/2019 14:06
{I-bank focus}Jefferies downgrades Shimao Property to "hold"
| Remark: | Real time quote last updated: 20/09/2024 12:44 |
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