Far from reaching revenue limit
? Country Garden Services (CGS) reported a 43% yoy increase in FY21 core net profit. However, overall GPM declined by 3.2% pt yoy.
? Proportion of reserve GFA from its sister company declined to 47% of total, meaning it is less and less reliant on sister company for portfolio growth.
? Management reiterates Rmb100bn revenue target in FY25F, with PM services and VAS to be the largest contributor of revenue.
? Reiterate Add on CGS with a lower TP of HK$62.6. It is our preferred largecap name in China property management.