Citi Research cut target prices of mainland property companies Agile, Country Garden, Powerlong

 

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Agile Group has so far performed all its open market debt obligations, continued to operate steadily, and also achieved progress in refinancing efforts, securing about HK$7.6 billion and $84 million financing from banks in April and May, respectively, Citi said in a note. 

In terms of land reserve monetization, Agrile planned to dispose of non-core assets worth 5 – 6 billion yuan and the average new home selling price rose to 14,900 yuan per square meter in the first half, up 165 from a year ago, it said. 

The broker kept the rating of Agile at Neutral with target price lowered from HK$1.5 to HK$1.25.

Country Garden’s operations have been stable, its investment has resumed, spending up to 8.3 billion yuan on land acquisition in the first five months of the year, and it stepped up refinancing efforts, the broker said. The rating of Country Garden was kept unchanged at Neutral with target price cut from HK$2.5 to HK$1.6.

Powerlong’s business operation was stable in the first half of the year, and its monthly property sales stable around 3 billion yuan, with average selling price rising 3% from a year ago. The broker rated the stock at Neutral with target price cut from HK$1.3 to HK$0.95.