[ET Net News Agency, 7 May 2021] Morgan Stanley lifted its target price for Agile Group
Holdings (03383) to HK$13 from HK$10.01 and maintained its "equal-weight" rating.
The research house fine-tuned its core earnings by -1.1% and 1.4% in 2021/22 due to
higher revenue by 11% and 24% on faster booking, and gross margin cut given lower gross
margin projects outside Hainan.
Despite its strong 2020 results, Morgan has concerns about Agile's limited consolidated
sold unbook (Rmb38bn as of end-2020), versus 2020 property development revenue of Rmb69bn.
It also has concerns about its gross margin trend. (KL)