[ET Net News Agency, 12 March 2021] Jefferies Research cut its target price for Times
Neighborhood Holdings (09928) to HK$10.83 from HK$11.15 and maintained its "buy" rating.
The research house said Times Neighbourhood reported strong FY2020 results. During the
results briefing, management emphasized the company's strategic shift to reduce its heavy
reliance on the M&A-driven growth model and expressed its aggressive goal of accelerating
the community VAS expansion.
However, Jefferies is concerned about the company's weaker cash conversion in that its
trade receivables jumped 169% (mainly boosted by the increase in related-party amount),
while its early receipt of management fee dropped 28%. (KL)