AMTD Research | Minmetals Land (230.HK): Growth Accelerates on the Back of 2020 Asset Injection

We published a research report on Minmetals Land (230.HK) on the back of its recent interim results announcement. Please kindly see the full report attached.

Key Highlights:

We believe the growth related to Minmetals’ 2020 asset injection is beginning to materialize through a solid 1H21 revenue and contracted sales performance. We expect the revenue growth to extend into 2H21E. Nonetheless, a turnaround will hinge on the proportion of profits attributable to shareholders, in our view.

• Minmetals announced a set of solid results for 1H21 with revenues growing 84% YoY to HKD4,926mn and net profit growing 58% YoY to HKD397mn, while we estimate core net profit increased 24% YoY to HKD72.9mn.
• Minmetals’ contracted sales reached RMB12.5bn for the first half of 2021, a 124% increase YoY, underpinned by the asset injection from its controlling shareholder in 2020.
• Moreover, there is clear visibility in terms of revenue growth for 2021-2022E, with a ~29% HoH increase in contract liabilities representing ~1.9x of our 2021E revenue.
• We thus believe we are beginning to see the growth stemming from the 2020 asset injection, in our view. As such, there may be a possible upside risk to our top-line estimate for 2H21E, but the upside to core net profit will depend on the profit sharing towards minority interests for 2H21E.