[ET Net News Agency, 23 December 2020] Citi Research lowered its target price for Midea
Real Estate Holding (03990) to HK$26.5 from HK$31.8 and maintained its "buy" rating.
The research house sees Midea RE as an energetic marathon runner on a 15-20% growth
track heading to an Rmb200bn sales scale in three years. Its sustainable growth is backed
by (1) urban renewal with 6 projects (Rmb30bn resources) converted in Foshan, Kunming,
Guiyang in 2020; (2) new-low finance costs for new loans at 5.18% (1H: 5.52%); and (3)
effective costs and quality control via new prefabrication production in Xuzhou and Handan
with Rmb209m contracts.
Management sees stable 25% GPM and 20-25% in longer-term and vowed to defend the 8-10%
NPM amid city exposure upgrade to Yangtze Delta (e.g. Hangzhou, Wenzhou, Yangzhou, etc)
from Greater Bay and deep-rooted penetration in existing cities. (KL)
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03990 MIDEA REAL EST
Nominal 
3.610 +0.050 (+1.404%) Research Report
23/12/2020 11:33
{I-bank focus}Citi cuts Midea Real Estate (03990) to HK$26.5
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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