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.
Equity Analysis /
Hong KongHK : Sunac Services - Higher collection risk a share price overhang
Raymond Cheng
Head of Hong Kong Research @ CGS-CIMB
30 March 2022

30 March 2022
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