[ET Net News Agency, 5 May 2020] UBS Global Research lifted its target price for
Country Garden Services (CGS)(06098) to HK$44.2 from HK$33.8 and maintained its "buy"
rating.
The research house raised its 2020-22 earnings forecasts by 15-36%, as it raised the
community value-added services revenue by 30% in 2020-22 due to faster than expected VAS
revenue growth in 2019, and UBS also incorporated the revenue and earnings contribution
from "Three Supplies and Property Management" in 2020-22.
UBS has higher earnings certainty for CGS's 1H earnings due to continued support from
its associated developers. Also, CGS has a strong potential and capability to win
third-party contracts in lower-tier cities. (KL)