[ET Net News Agency, 11 June 2020] Nomura raised its target price for KWG Properties
(01813) to HK$15.6 from HK$14.2 and maintained its "buy" rating.
The research house said KWG is one of Nomura's top picks in the sector, with its large
land bank (land bank life of 4.5 years) and sizeable exposure to key city clusters (63% in
Greater Bay and Yangtze River Delta).
Nomura expects KWG to deliver a 27% contracted sales CAGR over 2020-21, the highest
among the developers it covers. The potential for 27% DPS growth on the back of the EPS
growth implies an attractive FY2020 dividend yield of 8.1%. The spin-off of its property
management subsidiary in 2H20, which accounts for 10% of the current market cap, should
also drive a re-rating. (KL)