Equity Analysis /
Hong Kong

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

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    Steven MAK
    Will Chu
    1 April 2022
    Published byCGS-CIMB

    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).