[ET Net News Agency, 26 August 2020] UBS Global Research raised its target price for
Shimao Property (00813) to HK$38.2 from HK$34.8 and maintained its "buy" rating.
The research house said Shimao's 1H core net profit of Rmb5.6bn was slightly below UBS's
estimates by 5%. Management indicated the distribution of special dividends was mainly due
to the Rmb600m profit recognized from the equity disposal of Shimao Services to Tencent
(00700) and Sequoia Capital (representing 50% of disposal gain).
Meanwhile, management also guided another special DPS that will be announced in 2H,
which could be even higher since a sizeable gain will be recognized from the listing of
Shimao Services.
Coupled with high earnings visibility from the 5-year plan with core profit up +20% CAGR
and higher dividend payout, UBS assigned Shimao as another top-pick. (KL)