Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
RTNominal up9.540 +0.050 (+0.527%)
Research Report

10/06/2020 14:30

{I-bank focus}Time right to capitalize China property sector

[ET Net News Agency, 10 June 2020] HSBC Global Research believes it is the right time
to capitalize on the China property sector's significant valuation divergence which has
become exaggerated post the outbreak of COVID-19.
The research house believes the market's hunt for select quality stocks with obvious
catalysts is overplayed, notably in growth stocks such as KWG (01813) and Shimao (00813),
both of which are trading at close to all-time highs.
On the other hand, investors' willingness to accept the second-tier names remains
lukewarm despite improved execution, which presents a great value proposition, HSBC said.
Against this backdrop, HSBC advocated investors focus on laggards with a turnaround
story. It noted that a few stocks have placed shares since April, including Shimao and
CIFI, both of which conducted a share placement at narrow discounts of 2.2% and 1.3%,
respectively, to professional/institutional investors. HSBC believes these two
transactions do not necessarily signify broad-based equity fund-raising for the sector.
HSBC is constructive on the laggards where depressed valuations have yet to reflect
the improved fundamentals - China Resources Land (01109), Country Garden (02007), CIFI
(00884), and Logan Property Holdings (03380). It revised its target prices and ratings for
three players in the sector as follows:

Name Target Price Rating
Shimao Property (00813) HK$35.30 Buy to Hold
KWG Group (01813) HK$13.10 Buy to Hold
CIFI Holdings (00884) HK$7.30 to HK$8.60 Buy


Remark: Real time quote last updated: 30/10/2020 17:59
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2020 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.