Jinwu Financial News | According to the Bank of China International Development Research Report, the bank held a conference call with the management of Times Neighborhood (09928) to discuss the latest developments in operations and financial conditions, with the following highlights:
In the first half of 2023, the company voluntarily terminated the management contract for low gross margin projects, and gross margin rebounded. The company expects the overall management scale to remain stable in 2023. The gross margin has bottomed out and can remain around 23%. The company expects that in 2023, the revenue contribution of related parties will be less than 10%, and the construction area contribution will be less than 20%. As of the end of the first half of 2023, the company's net cash on hand was RMB 813 million. Considering abundant liquidity and lack of merger and acquisition targets, the company will consider re-examining its dividend policy.
The bank expects the company's operating scale to be stable, profit margins to improve, and core net profit to increase 8.6% year over year in 2023. The bank adjusted the target price to HK$0.60, which is equivalent to 3.5 times the expected price-earnings ratio in 2023. It is basically in line with the average of its peers and maintains a neutral rating.