Credit Suisse slashed the target prices of Country Garden Services’ Hong Kong stocks to HK$20.65 from previous target of HK$46.65, maintaining an Outperform rating.
The bank lowers the forecast of Country Garden Services’ annual profit in 2022 – 2024 by 10.8%, 17.9% and 21.3%, respectively, according to a note on Thursday.
Given the Covid resurgence and the slowdown in property acquisition by mainland real estate developers, Country Garden Services has been adversely affected in terms of its project acquisition, the bank said. It expect the compound annual growth rate of the property management’s profit to reach 21% in 2022 – 2024.
Country Garden Services, unit of China’s largest property developer by sales Country Garden, has lowered its full-year growth target, now aiming to achieve no lower than 40% growth of revenue in 2022, down from 50% target set at the start of the year. Read more …