Stable growth with improved balance sheet
■ Agile’s 1H21 core net profit declined 5% yoy due to lower proportion of
recognition of high-margin projects; interim DPS maintained at HK$0.5.
■ It has diversified its land banking channels; 48% of new GFA acquired in
1H21 came from featured town or urban renewal projects.
■ To preserve its “Green Camp” status under Three Red Lines policy, it seeks
stable growth and thus targets a stable GPM of 28-30% for FY21-22.
■ Reiterate Add with a lower SOP-based TP of HK$11.8, after we widen our
target discount on its property NAV by 10% pts.