[ET Net News Agency, 14 December 2020] Huatai Research lowered its target price for
Country Garden Services (CGS) (06098) to HK$65.6 from HK$70.9 to account for dilution from
the placement and maintained its "buy" rating.
The research house said CGS's share placement (10 December) was a surprise, given its
seemingly abundant cash (RMB99bn as of end-1H). During its conference call (11 December),
management cited the main reasons for the placement as (1) to prepare enough cash ahead of
the maturity of its convertible bonds amid its volatile share price, and (2) to take near-
to medium-term investment and M&A opportunities in areas like community group-buying,
community technology development, and facilities management.
Management also clearly ruled out the possibility of further fundraising within the next
12 months. Huatai remains confident in CGS's unchanged growth ambitions to expand beyond
GFA accumulation and break into diversified vertical segments. (KL)
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06098 CG SERVICES
Nominal 
4.690 +0.040 (+0.860%) Research Report
14/12/2020 18:01
{I-bank focus}Huatai lowers CG Services (06098) to HK$65.6
| Remark: | Real time quote last updated: 25/04/2024 16:38 |
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