[ET Net News Agency, 24 April 2018] Morgan Stanley lifted its target price for Country
Garden (02007) to HK$19.2 from HK$19, and reiterated its "overweight" rating.
The research house likes Country Garden's high asset turnover business model and strong
consolidation capability due to its employee incentive scheme. It also has a positive
outlook on lower-tier cities.
Morgan expects the company to generate strong earnings, with a 60% CAGR in 2017-19, one
of the strongest rates of growth in its coverage. It noted better supply/demand outlook in
lower-tier cities. Morgan added that the company's high asset turnover enables it to
maintain high growth under the flat ASP environment. (KL)