Goldman Sachs slashed the forecast of underlying earnings-per-share in the year of 2022 – 24 for Country Garden, the largest property developer by sale in China, by 24% on average, to reflect the share placement, tepid pre-sales growth outlook, lower property development booking revenue and delayed project completions due to tight liquidity and long-term profit margin pressures.
The projection of the property developer’s 2022-24 contracted sales is also reduced by 20-25%, it said in a note.
The target price for the stock was lowered to HK$3.3, with a Sell rating, said Goldman Sachs.