[ET Net News Agency, 26 February 2021] Jefferies Research lifted its target price for
Country Garden Services Holdings (06098) to HK$86.68 from HK$78.33 and maintained its
"buy" rating.
CG Services entered into an MOU to acquire a 64.6% stake of Sichuan Languang Justbon
(02606) at 9.9x forward P/E. Besides the 10-13% EPS enhancement, the research house
believes the company would benefit from synergies on its scale/ geographical exposure/
margin/ community VAS expansion.
Considering the large deal size and bargain pricing, Jefferies believes the market would
react very positively to the transaction. It revised up its FY2021-22 GFA and earnings
forecasts to 636mn/785mn sqm and RMB4.2bn/RMB5.7bn (implying 50% CAGR). (KL)