[ET Net News Agency, 22 January 2020] Daiwa Research raised its target price for China
Jinmao (00817) to HK$6.7 from HK$4.9 and maintained its "outperform" rating.
The research house has had an update with management from China Jinmao on its operating
performance and prospects for 2020. Daiwa believes Jinmao has the ability to acquire
low-cost landbank through its differentiated business model - city operation projects -
which will bring about steady sales growth and margins.
For 2020, Daiwa believes the company will target at least CNY200bn in contract sales, a
rise of 24%-plus, backed by a 60%-plus sell-through rate (2019: >65%). Jinmao's city
operation projects accounted for some 40-45% of its new land acquired in 2019, and the
company expects this ratio to rise to 60% in 2020-22. (KL)