[ET Net News Agency, 4 September 2019] Goldman Sachs lowered its target price for SOHO
China (00410) to HK$2.7 from HK$3 and maintained its "sell" rating.
The research house said SOHO's 1H core profit (net profit excluding post-tax revaluation
gains) of Rmb154mn accounts for 32% of Goldman's full-year estimate, due to weaker than
expected rental performance and lower interest income.
Post results, Goldman revised its 2019-21 underlying EPS forecasts by -18%/-19%/-14%, by
pushing forward prior FY2019 property sales revenue assumption to later years, lowering
its occupancy rate in most of its Beijing projects, and factoring in below expectation
rental income from Gubei SOHO. (KL)