Equity Analysis /
Hong Kong

HK : China Aoyuan Group - Focusing on UR conversion

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    30 March 2021
    Published byCGS-CIMB

    Aoyuan reported a 16% yoy increase in core net profit in FY20; a special DPS was declared in conjunction with its 25th anniversary of establishment. It targets for Rmb150bn contracted sales in FY21F and believes sales growth in later years will not be lower than 10% p.a. It set a lower annual budget for land bank expansion, while targeting to speed up conversion of urban redevelopment (UR) projects. Reiterate Add, with a slightly lower TP of HK$10.3 (a 40% discount to NAV).