Major overhang removed
- 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