[ET Net News Agency, 8 September 2020] Morgan Stanley raised its target price for China
Vanke (02202) to HK$30.56 from HK$30.22 and maintained its "equal-weight" rating.
The research house said the price target hike was based on its new 2020 NAV estimate of
HK$43.66 (up from HK$43.17), to factor in new land replenishment in 1H. Morgan also
revised its 2020-22 core earnings estimates by -0.3%/3%/4%, respectively, to reflect
accelerated revenue booking and a normalized gross margin.
It noted Vanke's sluggish growth in contract sales in 2020. Diversification of the
business will take time to bear fruit. Vanke's 2020 earnings are under pressure due to
a delayed delivery schedule. (KL)