[ET Net News Agency, 16 October 2020] Jefferies Research lifted its target price for
Country Garden Services (06098) to HK$63.13 from HK$60.59 and maintained its "buy" rating.
The research house is positive on CG Services' acquisition of a 70% stake in Manguo
Kangjie for RMB2.45bn. It believes the deal would significantly enhance the company's
capability in the city service segment with nationwide exposure, as well as boost the
company's FY2021-22 earnings by 4%.
Jefferies lifted its FY2021-22 earnings forecasts by 4% on the announced acquisition. It
likes the company's absolute leading position in low-tier cities, strong earnings growth
(45% CAGR in FY2019-22) with high visibility, fast-expanding community VAS, and highly
incentivized management. (KL)