[ET Net News Agency, 5 November 2019] J.P. Morgan initiated coverage on CIFI Holdings
(00884) with an "overweight" rating and target price of HK$7.5.
After three years of rapid scale expansion through the JV strategy, CIFI has now entered
a harvest stage where the focus will be on raising attributable ratio, and deepening roots
in existing cities, the research house said.
Investors' concerns on the higher JV proportion and margin squeeze will be gradually
relieved with diminishing reliance on JV (only 14% of new land acquisitions in 2019 are
JV, versus >40% before) and reducing land cost in 9-month 2019 (land cost 28% of ASP).
At 25% earnings CAGR in 2018-21 (peers average of 19%), 36% Y/Y attributable sales
growth in 2020 (peers average: 15%), defensive land bank (89% in city clusters, versus
average of 75%) & 82% net gearing (peers average: 90%), CIFI offers an attractive
risk-reward as it is only trading at 4.4x 2020 P/E (among the lowest in big/mid-cap space)
and 6% 2019 dividend yield, JPM said. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00884 CIFI HOLD GP
Nominal 
0.225 -0.011 (-4.661%) Others
05/11/2019 17:38
{I-bank focus}JPM starts CIFI Holdings (00884) at HK$7.5
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