金溢科技(002869):Steady development of core businesses

  

  Equity Research

  January 20, 2020

  Greentown Service Group

  

  Steady development of core businesses

  

   Results Preview Maintain OUTPERFORM

  

  

   Ticker 02869.HK

  Recurrent earnings expected to grow by 25% YoY in 2019

   CICC investment rating OUTPERFORM

  We expect recurrent net profit of Rmb505mn in 2019, up 25% YoY, Last close HK$9.28

  and reported net profit of Rmb452mn, down 7% YoY, both in line with CICC target HK$10.20

  market consensus. We add back share-based payment transactions

  expenses (est. Rmb26mn, Rmb80mn, and Rmb40mn in 2018, 2019, 52wk price range HK$9.59~5.42

  

  and 2020) and exclude one-off gains and losses when we calculate Market cap (bn) HK$26

  recurrent net profit from reported net profit. Daily value (mn) HK$47.80

  Shares outstanding (mn) 2,789

  Free float (%) 100

  Trends to watch Daily volume (mn sh) 5.52

  Steady GFA growth with deeper penetration in core cities. We Business sector R