[ET Net News Agency, 6 January 2020] Huatai Research initiated coverage on Ever
Sunshine Lifestyle Services Group (ES)(01995) with a "buy" rating and a target price of
HK$7.8.
The research house said ES demonstrated an attractive combination of a visionary
management team and solid execution capabilities, resulting in the company's rapid
earnings growth (2018-2021 core net profit CAGR of 68%); Huatai believes ES is a potential
candidate to break into the "top 10 club" of property management companies (in terms of
scale and business operations) in three to five years.
Huatai expects that ES should generate fast revenue and core net profit growth from its
community VAS (2018-2021 CAGR of 69% and 89%, respectively), solidifying the company's
position as a direct proxy for the consumption upgrade trend of residents. (KL)