Higher collection risk a share price overhang
? Sunac Services reported a 117% yoy increase in FY21 core net profit with an unchanged 30% payout ratio.
? Due to liquidity issues of its parent, we expect Sunac Services to see slower growth in managed GFA and VAS to non-property owners.
? Investors may watch out for Rmb2.3bn increase in trade receivables from related parties in FY21. Downgrade to Hold with a lower TP of HK$5.6.