Equity Analysis /
Hong Kong

HK : Shenzhen Investment Ltd - Aggressive growth targets for next 5 years

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

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    CGS-CIMB
    8 April 2021
    Published byCGS-CIMB

    Shenzhen Investment’s (SZI) 49% yoy increase in core net profit in FY20 was mainly due to a HK$1.6bn distribution from Hengda Real Estate. It may take advantage of its “green” status under the Three Red Lines to leverage up to achieve growth targets it stipulated under its five-year plan. Its lucrative gross margins may sustain for some time before trending down later on a larger sales base. Reiterate Hold, with a higher TP of HK$2.97.