[ET Net News Agency, 28 October 2019] Daiwa Research raised its target price for
A-Living Services (03319) to HK$26.05 from HK$20.6 and maintained its "buy" rating.
The research house attributed A-Living's share price rally of 33% in the past month to
investors' positive reaction to its major acquisition announced in September, triggering a
re-rating.
Daiwa continues to like A-Living on its strong earnings growth forecasts for 2019-21,
backed by its active scale expansion and rapidly growing community value-added services.
Daiwa noted that A-Living's valuation used to be below its peers in the past due to its
smaller scale and higher reliance on M&A to drive growth. However, after this acquisition,
it believes that both overhangs have been removed and Daiwa is also optimistic about
A-Living's ability to provide quality value-added services. (KL)