[ET Net News Agency, 18 December 2019] Morgan Stanley initiated coverage on Times China
Holdings (01233) with an "overweight" rating and a target price of HK$19.69.
The research house said Times China has a strong presence in the Greater Bay Area (GBA),
with about 75% of its landbank located there. At end-1H 2019 it held 23mn sqm of land in
15 cities, and Morgan estimated it has Rmb285bn in total saleable resources. Its average
land cost is Rmb3,541/sqm, only 23% of its average contract sales price in 1H.
Meanwhile, Morgan said Times has deep expertise in urban redevelopment projects,
especially in Guangzhou and Foshan. In 1H, the company had 85 urban redevelopment projects
in the pipeline with a total gross floor area of 28mn sqm. Of this, 44 projects are likely
to be converted during 2019-21 with a total GFA of 12.5mn sqm. (KL)