[ET Net News Agency, 18 October 2019] Jefferies Research initiated coverage on Agile
Group Holdings (03383) with a "hold" rating and a target price of HK$11.13.
It said Agile is a national player with low-tier-city focus. Jefferies sees low earnings
visibility due to large gross margin squeeze on lower sales contributions from Hainan,
though its overall sales may remain steady at 20+%.
Jefferies expects more stake disposals in its mega projects to offset the earnings gap
and believes a potential spin-off of its environment protection/ construction segments is
a medium-term catalyst. (KL)