[ET Net News Agency, 4 February 2020] BofA Global Research cut its EPS estimates for
the China property sector by 2% and its target prices by 8% on average to reflect a
likely slump in contracted sales in 1Q due to the Wuhan virus outbreak.
The research house believes end-user demand for housing would only be delayed, not
eliminated, by the outbreak, but investor concerns over developers'liquidity are likely to
persist near term.
BofA, therefore, favors high-quality developer shares with (a) good earnings visibility,
(b) ample access to liquidity, and (c) less exposure to the hotel sector. Its revised
ratings and target prices for the counters it covers are as follows:
Name Rating Target Price
----------------------------------------------------------------
Agile (03383) Buy HK$12.50 from HK$13.90
China Vanke (02202) Neutral HK$33.00 from HK$38.00
COLI (00688) Buy HK$33.00 from HK$36.00
COGO (00081) Buy HK$6.80 from HK$6.10
Country Garden (02007) Underperform HK$11.30 from HK$12.80
CR Land (01109) Buy HK$41.00 from HK$43.00
Evergrande (03333) Buy HK$22.80 from HK$25.00
Guangzhou R&F (02777) Underperform HK$13.00 from HK$17.00
KWG (01813) Underperform HK$8.80 from HK$8.80
Longfor (00960) Buy HK$40.00 from HK$40.00
Shimao (00813) Buy HK$30.00 from HK$35.00
Sino-Ocean (03377) Underperform HK$3.00 from HK$3.00
Sunac (01918) Buy HK$48.00 from HK$58.00
Times China (01233) Buy HK$16.40 from HK$18.20
Aoyuan (03883) Buy HK$13.40 from HK$14.80
CIFI (00884) Buy HK$6.00 from HK$7.20
Jinmao (00817) Buy HK$6.30 from HK$6.70

(KL)