Country Garden Services tumbled nearly 5% after profit warning

 

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Country Garden Services tumbles as much as 4.8% to hit HK$14.6 in Hong Kong, bringing its market value below HK$50 billion.

The company recently issued a profit warning, saying that its net profit and net profit attributable to shareholders for 2022 are expected to decline significantly by 45%-51% and 51%-57%, respectively, compared to the previous year.

UBS said in a research note that, as Country Garden Services is a leading player in the industry, the disappointing performance may have a negative impact on other property management companies, and especially those that have actively pursued mergers and acquisitions and may face goodwill impairment. The bank reiterated Sell rating for the company, with target price at HK$14.6.

JPMorgan cut the target price of Country Garden Services from HK$30 to HK$25, maintaining Overweight rating.