vested
CG SERVICES Plummets Over 14% as President Cuts Stake Last Wed to Cash in Over $28M
CG SERVICES (06098.HK) plummeted 14.2% to last at $7.74, being the worst blue chip, on volume of 90.04 million shares and turnover of $727 million.
Information from the Stock Exchange showed that Li Changjiang, President and Executive Director of CG SERVICES, reduced his stake in the company in two tranches totaling 3.2279 million shares last Wednesday (19th), cashing in more than $28 million.
Upon completion, his long position was reduced from 0.15% to 0.11%.
Related News: JPM Downgrades COUNTRY GARDEN/ CG SERVICES/ CHINA SCE GROUP to Underweight, Axes Their TPs
JP Morgan downgraded CG SERVICES from Overweight to Underweight and slashed the TP from $22 to $6.7.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/analy ... 280479/all
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Country Garden Services 6098
30 posts
• Page 3 of 3 • 1, 2, 3
Re: Country Garden Services 6098
by winston » Mon Jul 24, 2023 11:21 am
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winston - Billionaire Boss
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Re: Country Garden Services 6098
by winston » Wed Aug 02, 2023 10:04 am
vested
We downgrade Country Garden Services to HOLD with a lower target price of HK$9.16.
Country Garden Services has two recent positive developments:
a) they announced a profit warning on 1 August, expecting core net profit to drop by 10% to 0% to Rmb2.6b-2.9b in 1H23, which is equivalent to 54-60% of our 2023 estimates, implying
decent progress in its business operations; and
b) Ms Yang Huiyan announced that she would be gifting a 20% stake in CGS to Guo Qiang Public Welfare Foundation for charity purposes.
We expect the latter action to further improve the independence and corporate governance of CGS.
However, as we expect property sales in lower tier cities to remain weak in 2H23 and we see little clues of further relaxation of supply-side policies in the near term, Country Garden may continue to see weakened sales in Aug 23.
With Rmb2.2b of bond maturity in Aug 23 and 9.7b of bond maturity/redemption in Sep 23, Country Garden is seeing rising liquidity risks, which will also lower the visibility of Country Garden Services’ development.
Thus, we applied higher beta to factor in higher volatility and lower our target price to HK$9.16.
Source: UOBKH
We downgrade Country Garden Services to HOLD with a lower target price of HK$9.16.
Country Garden Services has two recent positive developments:
a) they announced a profit warning on 1 August, expecting core net profit to drop by 10% to 0% to Rmb2.6b-2.9b in 1H23, which is equivalent to 54-60% of our 2023 estimates, implying
decent progress in its business operations; and
b) Ms Yang Huiyan announced that she would be gifting a 20% stake in CGS to Guo Qiang Public Welfare Foundation for charity purposes.
We expect the latter action to further improve the independence and corporate governance of CGS.
However, as we expect property sales in lower tier cities to remain weak in 2H23 and we see little clues of further relaxation of supply-side policies in the near term, Country Garden may continue to see weakened sales in Aug 23.
With Rmb2.2b of bond maturity in Aug 23 and 9.7b of bond maturity/redemption in Sep 23, Country Garden is seeing rising liquidity risks, which will also lower the visibility of Country Garden Services’ development.
Thus, we applied higher beta to factor in higher volatility and lower our target price to HK$9.16.
Source: UOBKH
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Country Garden Services 6098
by winston » Wed Aug 02, 2023 11:28 am
vested
CG SERVICES (06098.HK) Rallies Over 9% on Proposed Shr Buyback
CG SERVICES (06098.HK) opened up 11.67% today (2nd), peaking at $9.38.
It last printed at $9.19, up 9.4%, on volume of 5.6795 million shares and turnover of $53.0813 million.
Prior to this, CG SERVICES had issued a profit warning, anticipating that, for the six months ended 30 June 2023, the Group will record net profit of RMB2.318 billion to RMB2.576 billion, down from that in the corresponding period of the previous year.
Related News: UBS Finds News of CG SERVICES Controlling Shareholder Donating 20% Stake Negative to Shr Price
It had also announced that the Board intends to repurchase not more than 337 million shares, representing 10% of the total number of issued shares of the Company, in the open market.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/analy ... stock-news
CG SERVICES (06098.HK) Rallies Over 9% on Proposed Shr Buyback
CG SERVICES (06098.HK) opened up 11.67% today (2nd), peaking at $9.38.
It last printed at $9.19, up 9.4%, on volume of 5.6795 million shares and turnover of $53.0813 million.
Prior to this, CG SERVICES had issued a profit warning, anticipating that, for the six months ended 30 June 2023, the Group will record net profit of RMB2.318 billion to RMB2.576 billion, down from that in the corresponding period of the previous year.
Related News: UBS Finds News of CG SERVICES Controlling Shareholder Donating 20% Stake Negative to Shr Price
It had also announced that the Board intends to repurchase not more than 337 million shares, representing 10% of the total number of issued shares of the Company, in the open market.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/analy ... stock-news
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Country Garden Services 6098
by winston » Wed Aug 02, 2023 5:18 pm
not vested
JPM Expects CG SERVICES (06098.HK) Shr Buyback to Start from Late Aug at Earliest, Keeps Underweight Rating
JPMorgan wrote in a report that CG SERVICES (06098.HK) has announced its intention to buy back its shares, but the broker did not expect the buyback to start earlier than late August or early September, since the company is currently in a 1-month lockup period before the interim results announcement.
The broker further believed that the buyback won't be of a large scale.
According to the earnings forecast, CG SERVICES expected interim earnings to come in between flat to down 10%, which would be slightly better than JPM's estimate of a 12% decline, but still falls short of management's guidance of double-digit earnings growth in FY23.
To achieve this target, net profit will need to grow 24%-38% YoY in 2FH23.
The interim warning is therefore seen as a reaffirmation of investors' concerns that management's guidance will not be met.
JPMorgan maintained its Underweight rating on CG SERVICES, as market concerns about its liquidity will continue to weigh on investor sentiment.
The broker gave it a target price of $6.7.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
JPM Expects CG SERVICES (06098.HK) Shr Buyback to Start from Late Aug at Earliest, Keeps Underweight Rating
JPMorgan wrote in a report that CG SERVICES (06098.HK) has announced its intention to buy back its shares, but the broker did not expect the buyback to start earlier than late August or early September, since the company is currently in a 1-month lockup period before the interim results announcement.
The broker further believed that the buyback won't be of a large scale.
According to the earnings forecast, CG SERVICES expected interim earnings to come in between flat to down 10%, which would be slightly better than JPM's estimate of a 12% decline, but still falls short of management's guidance of double-digit earnings growth in FY23.
To achieve this target, net profit will need to grow 24%-38% YoY in 2FH23.
The interim warning is therefore seen as a reaffirmation of investors' concerns that management's guidance will not be met.
JPMorgan maintained its Underweight rating on CG SERVICES, as market concerns about its liquidity will continue to weigh on investor sentiment.
The broker gave it a target price of $6.7.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Country Garden Services 6098
by winston » Tue Aug 29, 2023 1:39 pm
not vested
CG SERVICES (06098.HK) Interim NP Decline 8.7% to RMB2.351B
CG SERVICES (06098.HK) announced its interim results for the 6 months ended June 2023.
Net profit dropped 8.7% YoY to RMB2.351 billion, with a basic EPS of RMB69.7 cents.
Core net profit fell 9.5% YoY to RMB2.615 billion. No interim dividend was declared.
Revenue for 1H23 reached RMB20.733 billion, up 3.4% YoY.
Gross profit dropped by 4.3% YoY to RMB5.158 billion.
Overall gross profit margin dropped by 2 ppts from about 26.9% in 1H22 to about 24.9%, mainly due to the decline in gross profit margins of community value-added services and value-added services to non-property owners.
As at 30 June, excluding the "Three Supplies and Property Management" business, the contracted gross floor area (GFA) under management was around 1.646 billion square metres.
The revenue-bearing GFA under management was around 916 million square metres, representing YoY increases of 44.7 million square metres and 46.9 million square metres respectively.
The contracted and revenue-bearing managed GFA of the "Three Supplies and Property Management" business was 92.9 million square metres and 88.2 million square metres respectively.
As at the end of June, the group's total bank deposits and cash amounted to approximately RMB12.712 billion, compared to RMB11.377 billion at the end of December last year.
The board believed that the shares have been trading at a price level that does not fully reflect the intrinsic value of the group.
As such, depending on the market conditions and the company’s actual needs, the board intends to repurchase not more 10% of the total number of issued shares in the open market at an appropriate time.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
CG SERVICES (06098.HK) Interim NP Decline 8.7% to RMB2.351B
CG SERVICES (06098.HK) announced its interim results for the 6 months ended June 2023.
Net profit dropped 8.7% YoY to RMB2.351 billion, with a basic EPS of RMB69.7 cents.
Core net profit fell 9.5% YoY to RMB2.615 billion. No interim dividend was declared.
Revenue for 1H23 reached RMB20.733 billion, up 3.4% YoY.
Gross profit dropped by 4.3% YoY to RMB5.158 billion.
Overall gross profit margin dropped by 2 ppts from about 26.9% in 1H22 to about 24.9%, mainly due to the decline in gross profit margins of community value-added services and value-added services to non-property owners.
As at 30 June, excluding the "Three Supplies and Property Management" business, the contracted gross floor area (GFA) under management was around 1.646 billion square metres.
The revenue-bearing GFA under management was around 916 million square metres, representing YoY increases of 44.7 million square metres and 46.9 million square metres respectively.
The contracted and revenue-bearing managed GFA of the "Three Supplies and Property Management" business was 92.9 million square metres and 88.2 million square metres respectively.
As at the end of June, the group's total bank deposits and cash amounted to approximately RMB12.712 billion, compared to RMB11.377 billion at the end of December last year.
The board believed that the shares have been trading at a price level that does not fully reflect the intrinsic value of the group.
As such, depending on the market conditions and the company’s actual needs, the board intends to repurchase not more 10% of the total number of issued shares in the open market at an appropriate time.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: Country Garden Services 6098
by winston » Wed Aug 30, 2023 9:56 am
not vested
Country Garden Services (6098 HK)
1H23: Results In Line With Profit Alert; Regaining Growth May Need More Time
CGS’ 1H23 earnings dropped by 9.5% yoy, coming in at the low end of its profit alert.
No interim dividend was declared.
The steady growth in property management services was partially offset by a deterioration of value added services.
The rapid increase in related party receivables may point to rising risks of impairment.
Management strives to achieve steady development and independence in 2H23.
We keep our earnings forecasts.
Maintain target price of HK$9.16 and HOLD rating.
Source: UOBKH
https://research.uobkayhian.com/content ... 63c53d8ceb
Country Garden Services (6098 HK)
1H23: Results In Line With Profit Alert; Regaining Growth May Need More Time
CGS’ 1H23 earnings dropped by 9.5% yoy, coming in at the low end of its profit alert.
No interim dividend was declared.
The steady growth in property management services was partially offset by a deterioration of value added services.
The rapid increase in related party receivables may point to rising risks of impairment.
Management strives to achieve steady development and independence in 2H23.
We keep our earnings forecasts.
Maintain target price of HK$9.16 and HOLD rating.
Source: UOBKH
https://research.uobkayhian.com/content ... 63c53d8ceb
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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Re: Country Garden Services 6098
by winston » Thu Aug 31, 2023 9:08 am
not vested
Buyback on track despite fall in earnings
Country Garden Services (6098) saw its first-half net profit drop by 8.7 percent year-on-year to 2.35 billion yuan (HK$2.53 billion) but reaffirmed its plan to buy back up to 10 percent of its shares.
Core net profit, which excluded borrowing costs of convertible bonds, share-based payment expenses and fair value changes in assets, fell by 9.5 percent to 2.62 billion yuan, according to a filing yesterday.
But revenue rose 3.4 percent to 20.7 billion yuan, of which sales of property management services increased by 11 percent to 12.2 billion yuan.
Its cash and cash equivalents stood at 12.5 billion yuan by June and it does not have plans to raise funds, the property services firm said.
And it expects to generate no less than 2.19 billion yuan in net cash from operations in the second half of the year.
The company also confirmed its intention to repurchase shares "trading at a price level that does not fully reflect its intrinsic value."
Source: Bloomberg
https://www.thestandard.com.hk/section- ... n-earnings
Buyback on track despite fall in earnings
Country Garden Services (6098) saw its first-half net profit drop by 8.7 percent year-on-year to 2.35 billion yuan (HK$2.53 billion) but reaffirmed its plan to buy back up to 10 percent of its shares.
Core net profit, which excluded borrowing costs of convertible bonds, share-based payment expenses and fair value changes in assets, fell by 9.5 percent to 2.62 billion yuan, according to a filing yesterday.
But revenue rose 3.4 percent to 20.7 billion yuan, of which sales of property management services increased by 11 percent to 12.2 billion yuan.
Its cash and cash equivalents stood at 12.5 billion yuan by June and it does not have plans to raise funds, the property services firm said.
And it expects to generate no less than 2.19 billion yuan in net cash from operations in the second half of the year.
The company also confirmed its intention to repurchase shares "trading at a price level that does not fully reflect its intrinsic value."
Source: Bloomberg
https://www.thestandard.com.hk/section- ... n-earnings
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Country Garden Services 6098
by winston » Tue Dec 19, 2023 12:19 pm
not vested
UBS Estimates CG SERVICES to Cut 2023 Div. to Zero, as Impairment Makes up 75-96% of NP Forecast
UBS released a research report on CG SERVICES (06098.HK), which expected its own net profit to decrease by RMB3.2 billion-RMB4.1 billion this year, due to impairment charges on accounts receivable, goodwill and other intangible assets.
The broker's net profit forecast for the year on CG SERVICES is about RMB4.26 billion, so the impairment is expected to account for about 75%-96% of the net profit forecast, which could lead to the yearly dividend becoming zero.
The broker also expected CG SERVICES to record an impairment of its related party trade receivables due to the default of offshore bonds of COUNTRY GARDEN (02007.HK) from the same series.
According to the interim results, CG SERVICES has about RMB2.3 billion of related party trade receivables, so it is expected that the company has already impaired most of such receivables this time.
Related News: M Stanley Expects CG SERVICES May Need to Make Impairment Provision for RMB6.7B Goodwill, 3rd-party Loans in Next Few Yrs
However, UBS pointed out that CG SERVICES still has about RMB16 billion of third-party receivables, which may also need to be impaired as the mainland property market remained weak.
Due to the lack of dividend support, the broker expected the share price of CG SERVICES to react negatively.
UBS maintained its Neutral rating on CG SERVICES, with a target price of $7.9.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/analy ... stock-news
UBS Estimates CG SERVICES to Cut 2023 Div. to Zero, as Impairment Makes up 75-96% of NP Forecast
UBS released a research report on CG SERVICES (06098.HK), which expected its own net profit to decrease by RMB3.2 billion-RMB4.1 billion this year, due to impairment charges on accounts receivable, goodwill and other intangible assets.
The broker's net profit forecast for the year on CG SERVICES is about RMB4.26 billion, so the impairment is expected to account for about 75%-96% of the net profit forecast, which could lead to the yearly dividend becoming zero.
The broker also expected CG SERVICES to record an impairment of its related party trade receivables due to the default of offshore bonds of COUNTRY GARDEN (02007.HK) from the same series.
According to the interim results, CG SERVICES has about RMB2.3 billion of related party trade receivables, so it is expected that the company has already impaired most of such receivables this time.
Related News: M Stanley Expects CG SERVICES May Need to Make Impairment Provision for RMB6.7B Goodwill, 3rd-party Loans in Next Few Yrs
However, UBS pointed out that CG SERVICES still has about RMB16 billion of third-party receivables, which may also need to be impaired as the mainland property market remained weak.
Due to the lack of dividend support, the broker expected the share price of CG SERVICES to react negatively.
UBS maintained its Neutral rating on CG SERVICES, with a target price of $7.9.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/analy ... stock-news
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Country Garden Services 6098
by winston » Wed Mar 27, 2024 2:16 pm
CG SERVICES Annual NP Slips 85% to RMB292M; Final & Spec. Div. Total RMB29.46 Cents
CG SERVICES (06098.HK) announced its annual results for the year ended December 2023, with a turnover of RMB42.612 billion, up 3% YoY.
It recorded a net profit of RMB292 million, down 85% YoY, with an EPS of RMB8.69 cents.
The dividend totaled RMB29.46 cents, including a final dividend of RMB2.19 cents and a special dividend of RMB27.27 cents, compared to RMB37.21 cents in the same period last year.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
CG SERVICES (06098.HK) announced its annual results for the year ended December 2023, with a turnover of RMB42.612 billion, up 3% YoY.
It recorded a net profit of RMB292 million, down 85% YoY, with an EPS of RMB8.69 cents.
The dividend totaled RMB29.46 cents, including a final dividend of RMB2.19 cents and a special dividend of RMB27.27 cents, compared to RMB37.21 cents in the same period last year.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 118900
- Joined: Wed May 07, 2008 9:28 am
Re: Country Garden Services 6098
by winston » Wed Mar 27, 2024 4:18 pm
not vested
JPM: CG SERVICES Results Weak as Expected, Continues to Face Risks in Impairment, Being Treated as 'ATM'
CG SERVICES (06098.HK) has announced an asset impairment in December 2023, and issued a profit warning in early March 2024, JPMorgan issued a research report saying.
Therefore, a YoY decrease of 85%/ 22% in the Company's net profit/ core net profit did not come as a surprise to JPMorgan.
As the Company continues to face liquidity pressures, JPMorgan estimated that CG SERVICES will continue to face risks in impairment, organic growth capacity and being used as a financing tool, etc..
Related News: CG SERVICES Annual NP Slips 85% to RMB292M; Final & Spec. Div. Total RMB29.46 Cents
On the positive side of rating, CG SERVICES has been able to maintain its dividend level, and the Company's account receivable days improved slightly.
However, on the other hand, the Company's property management margin further declined, and are expected to remain under pressure in the next few years.
Therefore, JPMorgan trimmed its target price on CG SERVICES from $5.9 to $3.6, with rating kept at Underweight.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
JPM: CG SERVICES Results Weak as Expected, Continues to Face Risks in Impairment, Being Treated as 'ATM'
CG SERVICES (06098.HK) has announced an asset impairment in December 2023, and issued a profit warning in early March 2024, JPMorgan issued a research report saying.
Therefore, a YoY decrease of 85%/ 22% in the Company's net profit/ core net profit did not come as a surprise to JPMorgan.
As the Company continues to face liquidity pressures, JPMorgan estimated that CG SERVICES will continue to face risks in impairment, organic growth capacity and being used as a financing tool, etc..
Related News: CG SERVICES Annual NP Slips 85% to RMB292M; Final & Spec. Div. Total RMB29.46 Cents
On the positive side of rating, CG SERVICES has been able to maintain its dividend level, and the Company's account receivable days improved slightly.
However, on the other hand, the Company's property management margin further declined, and are expected to remain under pressure in the next few years.
Therefore, JPMorgan trimmed its target price on CG SERVICES from $5.9 to $3.6, with rating kept at Underweight.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 118900
- Joined: Wed May 07, 2008 9:28 am
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