Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/times-neighborhood-holdings" target="_blank" data-smartkarma-citation="entities:28666:1" rel="noopener">Times Neighborhood (9928 HK)</a> has been a disastrous call since we first highlighted it. In this insight, we reflect upon the red flags we could have done well to spot. </li>
<li>We cover red flags ranging from the level of precise guidance, pivot in strategy, and the parent's poor financial health, to the effect on receivables sucking cash from the company. </li>
<li>Everyone makes mistakes (we are human, after all). We would like to share our experience to educate readers to become better investors and sidestep investments in such names.  </li>
</ul>



Times Neighborhood (9928 HK) has been a disastrous call since we first highlighted it. In this insight, we reflect upon the red flags we could have done well to spot. 
We cover red flags ranging from the level of precise guidance, pivot in strategy, and the parent's poor financial health, to the effect on receivables sucking cash from the company. 
Everyone makes mistakes (we are human, after all). We would like to share our experience to educate readers to become better investors and sidestep investments in such names.  


Takeaways from the Times Neighborhood Investment Debacle

Binjiang Service Group / Equity Bottom-Up

<ul>
<li>A recent rally in property management companies due to measures taken by the government has set <a href="https://www.smartkarma.com/entities/binjiang-service-group-co-ltd" target="_blank" data-smartkarma-citation="entities:28940:1" rel="noopener">Binjiang Service Group (3316 HK)</a> for a big move upwards.</li>
<li>The stock is cheap and trades at 10.5x/8.1x FY22/23e PE with 37% of the market cap in cash and a 5.8%/7.4% FY22e/23e dividend yield.</li>
<li>Catalysts for the company are further loosening on the property by the government and a profit alert of 38-40% earnings growth for FY22.</li>
</ul>


A recent rally in property management companies due to measures taken by the government has set Binjiang Service Group (3316 HK) for a big move upwards.
The stock is cheap and trades at 10.5x/8.1x FY22/23e PE with 37% of the market cap in cash and a 5.8%/7.4% FY22e/23e dividend yield.
Catalysts for the company are further loosening on the property by the government and a profit alert of 38-40% earnings growth for FY22.


Binjiang: Set up for a Good Move From Here

<ul>
<li>
<a href="https://www.smartkarma.com/entities/binjiang-service-group-co-ltd" target="_blank" data-smartkarma-citation="entities:28940:1" rel="noopener">Binjiang Service Group (3316 HK)</a> presents a unique opportunity for investment in the property management space trading at 11.6x/9.4x FY22/23 PE, with a dividend yield of 5.2% FY22e (60% payout).</li>
<li>The company has &gt;35% of its market capitalization in cash, and the parent so far has been a relatively safer investment option compared to the rest in the property space.</li>
<li>If the company is willing to continue paying &gt;60%, we believe it can rerate to multiples comparable with SOEs of 16-20x PE.</li>
</ul>



Binjiang Service Group (3316 HK) presents a unique opportunity for investment in the property management space trading at 11.6x/9.4x FY22/23 PE, with a dividend yield of 5.2% FY22e (60% payout).
The company has &gt;35% of its market capitalization in cash, and the parent so far has been a relatively safer investment option compared to the rest in the property space.
If the company is willing to continue paying &gt;60%, we believe it can rerate to multiples comparable with SOEs of 16-20x PE.


Analyst

Steve Zhou, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/country-garden-services-holdin" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services (6098 HK)</a> announced a profit warning for 1H23 last night, expecting sales to increase by 3-4% yoy and net profit to see a 0-10% drop yoy.</li>
<li>The company also announced the intention to repurchase up to 10% of total shares outstanding. </li>
<li>Share price up +18% following the profit warning and share buyback announcement - a good read-across for the rest of the sector that will report interim results later this month. </li>
</ul>



Country Garden Services (6098 HK) announced a profit warning for 1H23 last night, expecting sales to increase by 3-4% yoy and net profit to see a 0-10% drop yoy.
The company also announced the intention to repurchase up to 10% of total shares outstanding. 
Share price up +18% following the profit warning and share buyback announcement - a good read-across for the rest of the sector that will report interim results later this month. 


Country Garden Services (6098 HK): 1H23 Profit Warning A Good Read-Across For The Sector

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>Having first introduced the three red line guidance in late 2020, the government has begun shifting its stance, and relaxing some of its regulatory oversight.</li>
<li>In this note, we looked at recent news developments and how some larger developers fared against the three red lines criterion.</li>
<li>Of the large developers we looked at, there are a few names which stand out which could potentially do a capital raising given their financial standing. </li>
</ul>


Having first introduced the three red line guidance in late 2020, the government has begun shifting its stance, and relaxing some of its regulatory oversight.
In this note, we looked at recent news developments and how some larger developers fared against the three red lines criterion.
Of the large developers we looked at, there are a few names which stand out which could potentially do a capital raising given their financial standing. 


Chinese Developers’ Overview - Shift in Sentiment but a Few Still Needs Some Equity

China

Times Neighborhood Holdings Limited provides real estate services. The Company offers property management solutions such as cleaning, gardening, repairing, and maintenance activities. Times Neighborhood Holdings serves customers in China.

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Times Neighborhood (9928 HK)

Takeaways from the Times Neighborhood Investment Debacle

We summarise our learnings /mistakes from the Times Neighborhood investment debacle. This piece covers aspects of financial analysis critical to...

Sameer Taneja

Binjiang: Set up for a Good Move From Here

Binjiang trades at 10.5x/8.1x FY22/23 PE with a dividend yield of 5.7/7.4% based on a 60% payout ratio. It is the best way to play the PMC bounce...

Sameer Taneja

Binjiang H1 2022: Management Soundbites

Binjiang Service Group (3316 HK) presents a unique opportunity for investment in the property management space trading at 11.6x/9.4x FY22/23 PE,...

Sameer Taneja

Country Garden Services (6098 HK): 1H23 Profit Warning A Good Read-Across For The Sector

Country Garden Services issued a less-than-feared profit warning and a share buyback announcement - a good read-across for the rest of the sector...

Steve Zhou, CFA

Chinese Developers’ Overview - Shift in Sentiment but a Few Still Needs Some Equity

Country Garden Holdings just launched a primary placement to raise US$300m, at a fixed 17.7% discount to last close. Proceeds will be used to repay...

Clarence Chu

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