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

We believe that <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> will continue to execute well in the current environment. There are multiple catalysts for the share price in the not too distant future:<ul>
<li>We expect the company to announce a profit alert for H1 FY2021, which at the very least would match its full-year guidance of 73% profit growth for FY2021. Given its historical record, we would not be surprised if it handily beats its guidance.</li>
<li>Recently the controlling shareholder has also purchased stock which further increases our conviction in the name.</li>
<li>We expect the company to be on track to accomplish its GFA guidance through M&amp;A and 3rd parties.</li>
<li>The stock is cheap, trading at 12.1x FY21 and 8.0x FY22 PE, which is a massive valuation gap to its peers.</li>
<li>The company has &gt;20% of its market capitalization in cash, and we believe that it will be able to engage in shareholder-friendly activities like increasing its payout ratios. We see dividend yields improving from 2.9% in FY21 to 4.8% in FY22.  We expect an improvement in the payout ratio from 35% to 40% unless the company can increase the pace of its M&amp;A activity.</li>
</ul>

We believe that Times Neighborhood (9928 HK) will continue to execute well in the current environment. There are multiple catalysts for the share price in the not too distant future:
We expect the company to announce a profit alert for H1 FY2021, which at the very least would match its full-year guidance of 73% profit growth for FY2021. Given its historical record, we would not be surprised if it handily beats its guidance.
Recently the controlling shareholder has also purchased stock which further increases our conviction in the name.
We expect the company to be on track to accomplish its GFA guidance through M&amp;A and 3rd parties.
The stock is cheap, trading at 12.1x FY21 and 8.0x FY22 PE, which is a massive valuation gap to its peers.
The company has &gt;20% of its market capitalization in cash, and we believe that it will be able to engage in shareholder-friendly activities like increasing its payout ratios. We see dividend yields improving from 2.9% in FY21 to 4.8% in FY22.  We expect an improvement in the payout ratio from 35% to 40% unless the company can increase the pace of its M&amp;A activity.


Times Neighborhood: Good H1 2021 on the Cards

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We assess Times China's ESG as "Adequate", in line with its "Adequate" Environmental, Social and Governance scores. Controversies are "Immaterial" and Disclosure is "Adequate".

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).  We assess Times China's ESG as "Adequate", in line with its "Adequate" Environmental, Social and Governance scores. Controversies are "Immaterial" and Disclosure is "Adequate". 

Times China - ESG Report - Lucror Analytics

Credit

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-13022'>Anton Oilfield</a></li><li><a href='#lucror-entity-26076'>China Vanke</a></li><li><a href='#lucror-entity-240'>Sunac China Holdings</a></li><li><a href='#lucror-entity-8085'>Times China</a></li><li><a href='#lucror-entity-20776'>UPL Ltd</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.Anton OilfieldChina VankeSunac China HoldingsTimes ChinaUPL Ltd

Morning Views Asia: Anton Oilfield, China Vanke, Sunac China Holdings, Times China, UPL Ltd

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-1909'>China Hongqiao</a></li><li><a href='#lucror-entity-8108'>Hopson Development</a></li><li><a href='#lucror-entity-8085'>Times China</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.China HongqiaoHopson DevelopmentTimes China

Morning Views Asia: China Hongqiao, Hopson Development, Times China

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.

  The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days. 

Chinese Property Weekly - 11 March 2022 - Lucror Analytics

China

Times China Holdings Limited operates as a real estate development company. The Company develops and markets residential areas, office buildings, hotels, restaurants, and other related areas. Times China Holdings markets its buildings throughout China.

Times China (1233 HK)

Times Neighborhood: Good H1 2021 on the Cards

Times Neighborhood is one of the most attractive property management companies with a 50% 3 yr-CAGR in profit growth trading at 12x FY21 and 8x...

Sameer Taneja

Times China - ESG Report - Lucror Analytics

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We assess Times China's ESG as...

Lucror Analytics

Morning Views Asia: Anton Oilfield, China Vanke, Sunac China Holdings, Times China, UPL Ltd

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Morning Views Asia: China Hongqiao, Hopson Development, Times China

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Chinese Property Weekly - 11 March 2022 - Lucror Analytics

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments,...

Lucror Analytics