[ET Net News Agency, 11 December 2020] Credit Suisse raised its target price for China
Vanke (02202) to HK$33.39 from HK$27.4 and upgraded its rating to "outperform" from
"neutral".
The research house said the "345 rules" are to force high-gearing developers to turn
more disciplined on land acquisition, Credit Suisse believes China Vanke will be better
positioned to replenish its land bank at a more reasonable cost on its strong balance
sheet. Its land acquisition accelerated over September-November, accounting for 33% of
contracted sales (versus 22% over 8-month 2020).
Credit Suisse cut its FY2020-22 EPS estimates by 4.3-5%. (KL)