Discarding expansion plan via M&A
? Times Neighborhood’s core profit in FY21 was 13% below our forecast, with
a lower payout ratio of 15%.
? Management is discarding its M&A strategy and focusing instead on thirdparty contracts for expansion.
? It targets a 30% revenue CAGR for community VAS over FY22F. Reiterate
Add with a lower TP of HK$2.75 (5.6x FY22F P/E).