Equity Analysis /
Hong Kong

HK : China Aoyuan Group - Striving to maintain top 30 ranking with urban redevelopment edge

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    Follow
    Contributors
    Jeffrey Mak
    Will Chu
    CGS-CIMB
    19 January 2021
    Published byCGS-CIMB

    We believe Aoyuan will aim for 15% sales growth in 2021 to maintain its nationwide top 30 ranking in terms of scale. It has a sizeable urban redevelopment pipeline with potential resources of Rmb660bn. It will contribute 20% of new landbank from 2021 onwards. It is currently classified as a ‘Yellow’ category developer under the Three Red Lines and management aims to become ‘Green’ within 2 years. It will maintain a 35-40% dividend payout. Reiterate Add.