External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Country Garden Services / Equity Bottom-Up

<ul><li>The profit alert came slightly below expectation for both reported and core profits at -51% to -57%/+5% (vs. most bearish market expectation of -50%/+7%).</li><li>This may put its share price under pressure at the market opening.</li><li>However, we think the worst is almost over as 1) net profit growth may start to accelerate in 2023E at double digit with improving macro and the assumed addition of 100mn sqm managed GFA. 2) Country Garden started to see sales pick up in Feb (+10% MoM). 3) Impairment would be limited in 2023E after ~RMB2bn done in 2022. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The profit alert came slightly below expectation for both reported and core profits at -51% to -57%/+5% (vs. most bearish market expectation of -50%/+7%).This may put its share price under pressure at the market opening.However, we think the worst is almost over as 1) net profit growth may start to accelerate in 2023E at double digit with improving macro and the assumed addition of 100mn sqm managed GFA. 2) Country Garden started to see sales pick up in Feb (+10% MoM). 3) Impairment would be limited in 2023E after ~RMB2bn done in 2022. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CG Services (6098 HK) – Is it time to bottom fish yet?

Thematic (Sector/Industry)

<ul><li>We are positive towards PM sector in 2023 as it is the key beneficiary of both housing completion push (GFA gain) and reopening (Community VAS), so higher growth and better cash collection.</li><li>This would create room for the existing market leaders and surviving POEs (after property crisis) to accelerate earnings growth, both organically and via M&amp;A activities.</li><li>Therefore, we forecast 2023E earnings growth at 23% from a low base of 12% in 2022E.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We are positive towards PM sector in 2023 as it is the key beneficiary of both housing completion push (GFA gain) and reopening (Community VAS), so higher growth and better cash collection.This would create room for the existing market leaders and surviving POEs (after property crisis) to accelerate earnings growth, both organically and via M&amp;A activities.Therefore, we forecast 2023E earnings growth at 23% from a low base of 12% in 2022E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Property Service Sector – 2023 a year for market leaders and survivors

China

Country Garden Services Holdings Company Limited provides real estate development services. The Company develops residential apartments, multi-functional complex buildings, government and public facilities, industrial parks, highway service stations, and schools. Country Garden Services Holdings serves clients in China.

Country Garden Services (6098 HK)

CG Services (6098 HK) – Is it time to bottom fish yet?

The profit alert came slightly below expectation for both reported and core profits at -51% to -57%/+5% (vs. most bearish market expectation of ...

CMB International

China Property Service Sector – 2023 a year for market leaders and survivors

We are positive towards PM sector in 2023 as it is the key beneficiary of both housing completion push (GFA gain) and reopening (Community VAS), so...

CMB International