HONG KONG, April 29, 2015 /PRNewswire/ -- Guotai Junan Securities and China Galaxy Securities, two leading securities companies in China, release their reports regarding Evergrande (3333.HK) as an underlying stock under Shanghai-Hong Kong Stock Connect on Apr. 29. Evergrande has its expected price increased to HKD 9.1 and "Market Outperform" rating reaffirmed by Guotai Junan Securities. China Galaxy Securities gives "Strong Buy" recommendation of Evergrande in its report. An original report from Sina Leju follows.
The EPS of Evergrande in 2015 and 2016 are expected to hit RMB 0.96 and RMB 1.13 in the report released by Guotai Junan Securities, up 18% and 17% on a year-on-year basis. The report also mentions that the newly-built strategic cooperation between Evergrande and PICC will allow the property development giant to enjoy much room for growth and have integration of capital and business. Additionally, the diversified businesses of the Group enjoy steady development, the core logic has been put into practice gradually and revaluation of the Group may be accelerated. The sufficient supply of Evergrande's property projects in stock are expected to enjoy a good market in virtue of the easing policy and industrial recovery.
According to China Galaxy Securities, the current EV/EBITDA multiple of Evergrande is 5.7, and the figure may go up to 8-9 or even above with the increasing vigorousness in HK stock market. As a leading property developer, Evergrande strives to expand its business, the report also reveals. A sound development circle of businesses with diversified businesses develop in coordination with each other has been fundamentally built by the Group. The property management company will be a bridge connecting each business while the health industry business is expected to be a highlight of future development.
It is reported that 6 reports regarding Evergrande has been released by 5 leading securities companies since Apr. 20, and Evergrande has its "Market Outperform", "Buy" and "Strong Buy" rating affirmed in these 6 reports.
In addition, Evergrande's recent cooperation with large financial institutes in various business fields is also notable. A strategic cooperation was reached between PICC and Evergrande on last Friday, and the cooperation will extend to fields of commercial insurance, pension industry, health management, internet resources sharing and other business. The win-win cooperation between two industrial giants with business complementation represents an integration of various businesses concerning people's livelihood, according to insider.