[ET Net News Agency, 2 April 2020] Goldman Sachs lowered its target price for China
Evergrande Group (03333) to HK$16.8 from HK$19.6 after marking to market the value of
Evergrande's existing stakes in equity investments and adding new project acquisitions. It
maintained its "neutral" rating.
The research house said Evergrande's FY2019 core profit of Rmb19.3bn was 48% below
Goldman's estimate. It thus revised down its 2020-22 underlying EPS forecasts by
16%/14%/12% to reflect slower project booking, rising SG&A, and below-expectation gross
margin. (KL)