[ET Net News Agency, 26 March 2021] HSBC Global Research cut its target price for
Country Garden (CG) (02007) to HK$10.8 from HK$11.8 and maintained its "buy" rating.
The research house said CG's FY2020 results were a disappointment. HSBC believes this
set of results had led to a build-up of suspense, as reflected in the -4.4% share price
reaction yesterday.
HSBC said CG's preponderance of balance sheet strength has become a less apparent
competitive advantage amid ongoing sector-wide deleveraging, but its balance sheet
strength remains healthy at 56% (FY2019: 46%) of net gearing. (KL)