Equity Analysis /
Hong Kong

HK : A-Living Services - Lower expectations for growth

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

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

    A-Living’s core net profit was up 31% yoy to Rmb2.3bn, with a 2.2%pt yoy decline in overall gross profit margin. We estimate slower contracted GFA growth of 50m sq m p.a. from 3P in FY22-24F, primarily due to a weaker property market. We cut its FY22-23F EPS to reflect just a 15% EPS CAGR over FY21-24F, and downgrade A-Living to Hold with a lower TP of HK$14.