1H21 results were in line, with core profit up 11% yoy, backed by 14% revenue growth. It declared an interim DPS of HK$0.7 (+17% yoy). Management expects the industry’s GPM to be under pressure ahead but thinks Shimao will be less affected given its cost efficiency. Management maintains its double-digit FY22/23 sales and net profit growth targets, subject to its ability to replenish its land bank with reasonable cost. Reiterate Add, with a lower TP of HK$24.6. Shimao trades at an attractive valuation of 3.4x CY21F P/E and offers 10% yield.