Equity Analysis /
Hong Kong

HK : China Vanke-H - Management: we can do a better job

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

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    Steven MAK
    Will Chu
    CGS-CIMB
    1 April 2022
    Published byCGS-CIMB

    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 maintain our NAV-based TP of HK$24.1, which suggests 27% upside. Reiterate Add. It trades at an attractive 6x FY22 P/E.