HK : Jinke Smart Services - Focus on quality growth rather than scale

JSS reported a 71% yoy increase in FY21 core net profit. Its higher GPM was, however, more than offset by higher impairments and SGA expenses. 3P developers’ 73% proportion of contracted GFA means that JSS’s parent is playing a progressively less important role in its management portfolio. We think JSS could better focus on VAS expansion and operational efficiency by dropping its 10x revenue growth plan. Reiterate Add; lower TP HK$36.3.