Equity Analysis /
Hong Kong

HK : China Evergrande Group - A new Evergrande in the making

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

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    CGS-CIMB
    1 April 2021
    Published byCGS-CIMB

    Evergrande said it is committed to improving its rating for Three Red Lines to green by end-2022 with its proactive deleveraging strategy since 2020. Its “New Evergrande” strategy could help unlock the value of each business unit and transform it into a giant conglomerate in China. We reiterate our Add call with a TP of HK$20.1. The potential spin-off of its online property and auto sales platform could be a share price catalyst.