HK : Country Garden Services - Far from reaching revenue limit

Country Garden Services (CGS) reported a 43% yoy increase in FY21 core net profit. However, overall GPM declined by 3.2% pt yoy. Proportion of reserve GFA from its sister company declined to 47% of total, meaning it is less and less reliant on sister company for portfolio growth. Management reiterates Rmb100bn revenue target in FY25F, with PM services and VAS to be the largest contributor of revenue. Reiterate Add on CGS with a lower TP of HK$62.6. It is our preferred large-cap name in China property management.