Macquarie Research lifted its target price for Yuzhou Properties (01628) by 16.8% to HK$3.22, and maintained its "outperform" call.
It said the target hike was based on our bullish sales forecasts of RMB14.2bn and RMB18.5bn in 2014 and 2015, implying a CAGR of 30%.
Without any of the seven new projects that are scheduled to launch in 2014, contracted sales were flattish in 4-month 2014 at RMB2.9bn, representing 22% of the management's annual target of RMB13.2bn and 20% of Macquarie's forecast.
The house expects the sales to rebound from 2Q with new launches. It expects "Xiamen Central Coast" and "Shoreline" to contribute above 35% GPM in 2014 revenue.
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