[ET Net News Agency, 12 November 2019] Goldman Sachs raised its target price for Shimao
Property (00813) to HK$34.6 from HK$30.8 and maintained its "buy" rating.
The research house raised Shimao 2020/21 underlying EPS forecasts by 11% and 14% to
reflect stronger contract sales outlook in 2020-21, and better margin outlook for 2021.
Goldman said Shimao has maintained strong land banking activities, on the back of
Rmb90bn for new acquisitions year-to-date with an average land cost of Rmb5,500/sqm, this
has translated into 149% land GFA acquired/property GFA sold.
Goldman also raised its GPM/NM forecast for 2021 given high-margin projects in HK,
Shenzhen, Beijing, Hangzhou, and Guangzhou that the company acquired during 2016-19 will
be booked in 2021. (KL)