[ET Net News Agency, 15 August 2019] Daiwa Research raised its target price for Yuexiu
Property (00123) to HK$2.05 from HK$1.94 and upgraded its rating to "buy" from
"outperform".
The research house said Yuexiu's 1H core net profit grew 63% to CNY1,830m, including
CNY766m of remeasurement gains on a JV. Management believes that its gross margin could be
sustained at 25-30% in the coming years. It is confident that it can complete its target
as it only requires a 24% sell-through rate in 2H versus 62% achieved in 1H.
Daiwa believes Yuexiu's "Railway+Property" business strategy is finally starting to bear
fruit. Given its robust unbooked sales of CNY52.7bn, Daiwa raised its 2019-21 EPS
forecasts by 1-5%. (KL)