[ET Net News Agency, 17 September 2019] Goldman Sachs lowered its target price for
Country Garden (CG)(02007) to HK$14.2 from HK$15 and maintained its "buy" rating.
The research house said CG outpaced China Vanke's (02202) contract sales and has held
the position of No. 1 home-builder in China and globally since 2017. With business
exposure to 279 cities at end-1H, CG is a "national" home-builder versus many others which
are more "urban" home-builders.
Because of such outstretched exposure and the general wisdom that home-builders can only
generate sustained profit in core urban areas (i.e., higher-tier cities), Goldman believes
CG's business focus is not commonly appreciated by the market.
After factoring in its new forecast of an overall 5% price decline in 2020, Goldman
revised its 2019-2021 EPS by 0%/0%/-6%. (KL)