Working hard to repay its Sep bonds
? KWG FY21 results were poor with core net profit falling 40% due to sharp
GPM contraction, higher SG&A and provisions for write-downs.
? We expect KWG to publish its audited report by 15 Apr 2022 and it could
declare dividends as well. We expect sales to drop about 10% in FY22F.
? We understand that KWG is committed to repaying its Sep bonds, which will
be about 80% financed by its residential projects in Hong Kong.
? We keep our Add call with a lower TP of HK$7.10, which offers 118% upside.
It trades at an attractive 2x FY22 P/E. KWG is one of our top small cap picks.