1H22: Core Net Profit In Line With Profit Alert; Transformation Painful But Needed
Core attributable net profit declined 46% yoy to Rmb1,820m, in line with profit alert. There is no dividend for 1H22. Gross margin remained stable at 20.7%. CIFI remains in the green category of the three red lines, with net gearing rising to 78.5% and cash to short-term debt dropping to 1.6x. Management expects Rmb200b of high quality saleable resources for 2H22, and targets to lower net gearing ratio to 50% in the medium term. Maintain BUY with a lower target price of HK$2.81.