[ET Net News Agency, 17 September 2019] Goldman Sachs lowered its target price for
China Jinmao (00817) to HK$30.8 from HK$32.5 but upgraded its rating to "buy" from
"neutral".
The research house said Jinmao's share price performance has been lackluster since
April, reflecting near-term headwinds hindering earnings growth due to margin pressure
from high land prices, declining attributable project interest, and elevated leverage post
its rapid expansion during the cyclical upturn in 2016-17.
However, Goldman thinks the market is overlooking the impending success of its landbank
and city operation incubation strategy, which Goldman sees starting to yield benefits from
2020 onward. It expects Jinmao to post 30% EPS CAGR in 2019-21. (KL)