Vanke’s entrance as strategic investor for Baishizhou would alleviate concerns over LVGEM’s ability to develop and complete the project
Immediate cash from related party loan repayment and more intimate relationship with Vanke to help with nearterm debt obligation repayments and negotiations
Baishizhou phase 1 expected to see a slight delay due to COVID-19 lockdowns with an updated timeline to commence presales in 3Q23
Maintain BUY with HK$1.89 TP on a lower NAV discount target to reflect higher refinancing risk
