[ET Net News Agency, 10 February 2021] CMB International Securities (CMBIS) initiated
coverage on Dafa Properties Group (06111) with a "buy" rating and a target price of
HK$8.32.
As born (in Wenzhou) and deep-rooted in YRD (Yangtze Delta) region, Dafa has achieved a
fast growth of >50% CAGR in 2018-20 to exceed RMB30bn sales, the research house said. With
sales growth remaining the key (up 15-20% in 2021), CMBIS thinks Dafa will also focus on
ROE and funding rate improvement via optimizing asset turnover, enhancing cash collection
rate and clearing inventories. This would provide more margin upside and healthy B/S in
the long run to fuel the earnings growth.
It expects the company to deliver 15-20% sales growth in 2021 to RMB35bn. Core earnings
are expected to grow at 12% CAGR in 2019-22 as increasing MI would offset the operating
leverage. (KL)
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06111 DAFA PPT
Nominal 
0.093 0.000 (0.000%) Research Report
10/02/2021 17:05
CMBIS starts Dafa Properties (06111) at "buy" and HK$8.32
| Remark: | Real time quote last updated: 23/09/2024 17:59 |
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