HK : Sunac Services - Higher collection risk a share price overhang

Sunac Serivces reported a 117% yoy increase in FY21 core net profit with an unchanged 30% payout ratio. Due to liquidity issues of its parent, we expect Sunac Services to see slower growth in managed GFA and VAS to non-property owners. Investors may watch out for Rmb2.3bn increase in trade receivables from related parties in FY21. Downgrade to Hold with a lower TP of HK$5.6.