Equity Analysis /
China

CN : China Vanke-A - Management: we can do a better job

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    Contributors
    Steven MAK
    Will Chu
    CGS-CIMB
    1 April 2022
    Published by

    Vanke’s FY21 results disappointed with core profit falling by 40% yoy, on weaker margins, lower investment income and asset write-down provisions. Management apologised for the bad results and admitted that it can do a better job, especially for the new business investment. We expect sales to fall 5-10% yoy in FY22F on weak property market. We trim our TP by 4% to Rmb22.5 (c.9% upside) as we cut our FY22-23F EPS forecasts. Reiterate Add.