Macquarie published a research report indicating that it predicts that it will be wet (1109.HK)Last year's profit increased by 13.9%, down the core profit forecast for 2019 to 21 by 11%-16%, and the target price increased by 8.5% to HK$42.99, Rating”Outperform the market”.
According to the bank, the company plans to announce last year's results at the end of March. It is expected that the company's revenue will increase by 19%, rental income will rise by 34%, and gross margin will drop to 36.3%. Core profit rose 13.9%, and the increase in earnings per share slowed to 13.3%. The dividend ratio is expected to be similar to last year, at 35%. The debt ratio also declined due to the previous allotment of shares.
The bank also pointed out that the company has a new management, and it believes investors will keep an eye on the strategies and methods of the new management. The bank said that the company, like other inns, was also affected by the novel coronavirus epidemic. The company's sales from Wuhan accounted for about 2% last year, land storage accounted for 3%, and the company also provided rent relief to shopping mall tenants. As for contract sales, it is estimated that if the epidemic can be controlled in the short term, the company can also grow by 10%.
