[ET Net News Agency, 24 August 2020] Jefferies Research increased its target price for
Logan Group (03380) to HK$17.49 from HK$15.5 and maintained its "buy" rating.
The research house said Logan's Chairman disclosed the company's new medium-term plan to
include its rental business as another core segment, in addition to its well-built
development and urban renewal segments.
Jefferies is impressed with the boosted conversion of its renewal pipeline in GBA
(>RMB450bn saleable resources) to sustain 20% sales CAGR in the next few years. It
believes these conversions should sustain the company's overall gross margin high at 30+%
in the next few years, considering their 60% operating margin.
Jefferies revised up its FY2020-22 earnings forecasts slightly to factor in the results
and better margin. (KL)