[ET Net News Agency, 5 June 2020] HSBC Global Research said China Vanke's (02202)
placement of 316m new H shares does not come as a surprise as it is a further step towards
enlarging H-share capital to meet HKEX's 15-25% public float requirement.
Although the new plan for issuing H shares is pending AGM approval, the research house
noted Vanke's H shares will account for 16.3% of total share capital on completion of the
placement, which will satisfy HKEX's lower bar of 15%.
Vanke stands out with its strong return profile, having one of the highest FY2020 ROEs
and earnings security (90% FY20 revenue lock-in ratios) among peers, HSBC said.
Therefore, it sees the current valuation as undemanding, at with 6.1x FY2020 core PE and
a 49% NAV discount, both hovering around historical lows, versus 8x-10.5x FY2020 PE of
quality peers including CRL (01109), Longfor (00960) and Shimao (00813).
HSBC maintained its "buy" rating, with an unchanged target price of HK$30.6. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
02202 CHINA VANKE
Nominal 
3.790 +0.040 (+1.067%) Research Report
05/06/2020 17:50
{I-bank focus}China Vanke's placement removes overhang
| Remark: | Real time quote last updated: 23/04/2024 17:59 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |