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China Securities: Affirm "Buy" Rating of Evergrande and Expect HKD7.8 for the Stock

2015-04-23 23:10 2347

HONG KONG, April 23, 2015 /PRNewswire/ -- With Shanghai-Hong Kong Stock Connect finding its way to appeal to more investors, increasing focuses have been placed by mainland securities companies on domestic leading companies listed in HK, and several leading securities companies are optimistic about Evergrande as an underlying stock under Shanghai-Hong Kong Stock Connect. An original report from Sina Leju follows.

Evergrande (3333.HK) has its "buy" rating affirmed in the report released by China Securities on Apr. 23. And China Securities' expected price for the Group for the next 6 months increases to HKD 7.8, a higher expectation than those given by Guotai Junan Securities, Haitong Securities and CITICS, making China Securities the fourth securities company increased its expected price for Evergrande following after the three previous ones this week.

According to the report released by China Securities, Evergrande is considered a leading group enjoying expanding and diversified development. The Group also enjoys strong momentum in real estate industry, optimized reserve and efficient sales, and its effective implementation of the strategy focusing on high turnover, high profit, high value yet light asset will allow the Group to secure further diversified development in such a capital market, also revealed in the report.    

China Securities predicts that in 2015, Evergrande will take the chance to make breakthrough in merger and integration, achieve advantages complementation through diversified cooperation with large domestic central and state-owned enterprises. The asset-light strategy has been fundamentally put into practice by the Group and the property projects in stock are expected to enjoy a good market in 2015.    

Evergrande has its "mkt outperform" and "buy" rating affirmed and expected price increased to HKD 6.5, HKD 7.74 and HKD 7.72 in reports released by Guotai Junan Securities, Haitong Securities and CITICS respectively in this week. 

On Apr. 23, the stock of Evergrande closed at HKD 5.46, up 2.2% on the day, with high hit at HKD 5.60, its highest over the past 4 years. The week has seen an increase of 15.9%, and the accumulated increase has been up to 81.4% since the launch of Shanghai-Hong Kong Stock Connect.  

Source: Sina Leju
Related Stocks:
HongKong:3333 OTC:EGRNY
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