CTRYF - Country Garden: All Eyes On Lower-Tier Cities Exposure And Robotics Business
Elevator Pitch
I maintain my "Neutral" rating on Hong Kong-listed Mainland China property developer Country Garden Holdings Company Limited (OTCPK:CTRYF) (OTCPK:CTRYY) [2007:HK].
Country Garden's relatively higher exposure to lower-tier cities could mean weaker contracted sales growth in FY2020, as compared to its peers which are focused on Tier-1 and Tier-2 cities. Country Garden could potentially spin-off its robotics business in the future, which could help to monetize the value of this new business eventually. However, this also means that Country Garden has an intention to continue investing in the robotics business