HK : Times Neighborhood - Discarding expansion plan via M&A

Times Neighborhood’s core profit in FY21 was 13% below our forecast, with a lower payout ratio of 15%. Management is discarding its MA strategy and focusing instead on third-party contracts for expansion. It targets a 30% revenue CAGR for community VAS over FY22F. Reiterate Add with a lower TP of HK$2.75 (5.6x FY22F P/E).