VAS and new businesses drive rapid growth
■ Country Garden Services (CGS) reported 48% yoy increase in core net profit
in 1H21, driven by community VAS and new businesses (e.g. city services).
■ After successful acquisition of Languang Justbon, CGS is interested in further
M&As but emphasises that pricing is a key consideration.
■ Management believes city services present a blue ocean for property
managers to extend their cooperation with local governments.
■ Upgrade to Add given its attractive valuations, with a lower TP of HK$74.1.