2021 results beat expectations; better disclosure expected to drive a rerating

■ DC Holdings released its 2021 results, which beat our expectations despite slower-than-expected revenue growth. This is in line with our view that the Company’s business transformation is bearing fruit.
■ The Company reclassified its business segments in terms of presentation, which in our view, should drive a rerating.
■ We expect DC Holdings to deliver consistent growth (both revenue and net profit) in the coming years compared to its volatile record before 2021.
■ We raised our net profit for 22F and 23F. We maintain our ADD rating with a higher target price of HK$8.00, based on 20x 2021F P/E (down from 30x 2020). The new target P/E multiple is in line with its five-year historical average.