Equity Analysis /
Hong Kong

HK : Colour Life Services - Struggling with strategy and growth

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    Will Chu
    Will Chu

    Analyst

    CGS-CIMB
    13 April 2021
    Published by

    Colour Life reported just a 1% yoy increase in FY20 core profit due to tax refund and government grants, with a 4% yoy decline in DPS. While it is still cleaning up unprofitable projects, it targets 10m sq m growth in contracted GFA in FY21F. We believe growth in the VAS segment will remain slow until a clear strategy is formulated. Reiterate Hold with an unchanged TP of HK$3.60.