[ET Net News Agency, 3 December 2019] Huatai Research raised its target price for KWG
Group Holdings (01813) to HK$11.6 from HK$10 and maintained its "buy" rating.
The research house said KWG has recovered from the poor performance in 2018 (core net
profit declined by 15%) with satisfactory performance in the first 10 months of 2019 for
both property development and property investment.
Huatai slightly lifted its core net profit estimates for KWG by 0.1-0.4% in 2019-2021 to
reflect its refreshed physical property market outlook over 2019-2020. It added that KWG's
current valuation stands at attractive levels (58% discount to 2020 NAV and 3.9x 2020 PE),
which offers a good entry opportunity. (KL)