[ET Net News Agency, 23 September 2020] J.P. Morgan cut its target price for China
Overseas Property Holdings (COPH)(02669) to HK$7.1 from HK$8 and maintained its "neutral"
rating.
In a structurally expanding sector that values growth, the research house thinks COPH
has yet to demonstrate a strong growth appetite, has an unproven ability to expand through
third-party GFA (still only <10% of GFA), lacks a solid growth roadmap, and has a
relatively passive approach to VAS.
With limited visible catalysts, JPM thinks COPH is fairly valued for its underperforming
growth, yet is a distinctive SOE in the space. JPM said it could turn more positive if
COPH were to become more aggressive in acquiring third-party GFA. (KL)