[ET Net News Agency, 1 September 2020] Goldman Sachs lifted its target price for China
Vanke (02202) to HK$31.1 from HK$30.5 and maintained its "buy" rating.
The research house said China Vanke's 1H net profit of Rmb12.5bn accounts for 29% of
Goldman's prior FY2020 estimates. It said Vanke saw slower project delivery and weaker
gross margin in 1H but offset by higher-than-expected JV income.
Given better-than-expected year-to-date sales performance, Goldman raised its 2020 sales
growth forecast to Rmb631bn (from Rmb601bn), or flat. Coupled with below-expectation
revenue booking but lower SG&A expense, Goldman revised its 2020-22 EPS forecasts by
-1%/+2%/+4%. (KL)