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<Research> M Stanley: CHINA VANKE (02202.HK) Liquidity Deteriorates, Turnaround Becoming Increasingly Difficult
Recommend 4 Positive 0 Negative 3 |
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Morgan Stanley said in a research report that CHINA VANKE (02202.HK) saw its net debt edge up to RMB265 billion in 1Q, even as total debt declined to RMB326 billion. However, its cash coverage ratio further deteriorated to 0.33x, while the net gearing ratio rose to 116%. During the period, core LPS narrowed by 12% YoY to RMB5.3 billion, and property revenue recognized fell 36% YoY. Unrecognized contracted sales dropped to RMB107 billion, indicating continued pressure on revenue going forward. Although the company announced the disposal of non-core farming businesses for more than RMB3.3 billion, the broker believes the proceeds are significantly insufficient relative to RMB9.3 billion of public debt maturing in the coming months. Addressing liquidity pressure will require faster inventory destocking, more asset disposals and broader refinancing efforts. However, with land reserves depleting and asset scale shrinking, the difficulty is increasing. The broker maintained an Underweight rating on VANKE A (000002.SZ), with a TP of RMB2.15. (ss/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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