Elevator Pitch
I maintain a "Neutral" rating on Hong Kong-listed Mainland China property developer China Jinmao Holdings Group Ltd. (FRSHY) [817:HK].
China Jinmao is targeting a strong +24.4% growth in contracted sales for FY2020, even though the coronavirus pandemic is having a negative impact on its contracted sales in the early part of the year. China Jinmao's gross margin declined from 37.5% in FY2018 to 29.4% in FY2019, but it is expected to improve going forward with increasing contribution from higher-margin city operation projects.
However, China Jinmao's adjusted net gearing is much higher than what