[ET Net News Agency, 14 January 2021] UBS Global Research lowered its target price for
China Vanke (02202) to HK$36.2 from HK$39.2 and maintained its "buy" rating.
Amid a strong market in the property management space, the research house recommended
Vanke on a potential spin-off of its property management arm, which might be worth over
HK$300bn market cap, close to Vanke's market cap of HK$304bn.
UBS said the company also has retail and logistics properties. Vanke's chairman publicly
mentioned that all non-development property businesses could be considered for a spin-off.
UBS estimated all these non-development property businesses might be worth close to 65% of
Vanke's SOTP valuation.
It lowered its 2020-22 earnings estimates by 5-14% mainly due to more conservative gross
margin estimates but the current valuation at 5.8x 2021 PE is still attractive and implies
a deep discount to UBS's SOTP valuation. (KL)
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02202 CHINA VANKE
Nominal 
3.690 -0.070 (-1.862%) Research Report
14/01/2021 10:50
{I-bank focus}UBS lowers China Vanke (02202) to HK$36.2
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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