[ET Net News Agency, 13 January 2020] UBS Global Research lifted its target price for
China Jinmao Holdings (00817) to HK$6.9 from HK$3.6 and upgraded its rating to "buy" from
"sell".
The research house turned more positive on Jinmao, as the property policy environment is
turning more favorable for the company to achieve its 2020 sales target of Rmb200bn, up
24%. The potential loosening of property price caps should allow Jinmao to accelerate its
project launches with more reasonable ASPs, alleviating margin concerns.
Besides, city operation projects, accounting for 45% of land acquisitions in 1H 2019,
remain a key competitive advantage for the company and offer higher GPM (gross profit
margin). By contrast, Jinmao will continue with the mixed-ownership reform with the aim of
deconsolidating from SinoChem, which will maintain over a 30% stake in the company. (KL)