HK : CIFI Holdings - Diversifying healthily

CIFI’s core profit in FY21 was down by 9% and largely in-line with our estimate. It declared 4-for-100 bonus share distribution apart from cash DPS. Management reiterated its target of increasing attributable stake of contracted sales to 70% in 5-10 years, to improve earnings quality. It has recently tapped into bond markets and secured MA facilities from Chinese banks. Reiterate Add with a lower SOP-based TP of HK$6.0.