[ET Net News Agency, 3 February 2021] Jefferies Research lifted its target price for
Sunac Services (01516) to HK$30.72 from HK$27.96 and maintained its "buy" rating.
The research house lifted its FY2021-22 earnings forecast by 8-9% to RMB1.3bn and
RMB2.2bn (implying 110% and 64%) after Sunac Services issued a positive profit alert.
Jefferies believes the company will probably revise up its conservative earnings
guidance during the results briefing in March to align with its fast scale expansion.
Despite its year-to-date outperformance (+26%), Jefferies finds the stock more
attractive than its comparable peers, given its faster scale/earnings growth. In addition
to the potential stock connect inclusion, Jefferies believes the management share
incentive scheme to be the next catalyst in 2Q. (KL)