not vested
COPH is our top pick for the property management sector.
We maintain BUY on COPH with a target price of HK$11.69.
We expect COPH to report resilient 1H23 results as:
a) expansion of GFA under management and contracted GFA is expected to be on track,
b) community VAS is expected to deliver decent revenue growth, thanks to the
company’s strong brand, and
c) we remain confident in COPH’s cost control ability and expect marginal improvement in GP margin, as compared to 15.9% last year.
Besides, on 31 Jul 23, NDRC reiterated support for the use of housing maintenance fund (HMF) and housing provident fund to steadily promote the renovation of old residential communities,
which may be potentially new growth drivers to PM companies.
Currently, COPH is trading at 14.4x 2024F P/E (close to 1.0SD below mean), and 2.1% 2024F dividend yield.
Source: UOBKH