China South City Holdings SEHK:1668 Stock Report

China South City Holdings Limited Provides Group Earnings Guidance for the Year Ended March 31, 2022

China South City Holdings Limited provided group earnings guidance for the year ended March 31, 2022, For the year, the company expected that the Group's profit will record a drop of about 70% compared to the year ended March 31, 2021; the expected decrease in profit is mainly due to decline in average selling price of properties delivered during the year, resulting in the decrease in the gross profit margin; the decline in commercial properties leasing demand in the midst of the COVID-19 pandemic and depressed macro market environment, resulting in a decrease in fair value gain on investment properties; increase in finance cost; and increase in the provision for inventory impairment.

China South City Holdings Limited to Report Fiscal Year 2022 Results on Jun 30, 2022

China South City Holdings Limited Announces Directorate Appointments

The board of directors of China South City Holdings Limited announced the following appointments of directors of the Company with effect from 16 June 2022: Mr. Wan Hongtao has been appointed as an Executive Director of the Company and the Group's Vice President; Mr. Qin Wenzhong has been appointed as an Executive Director of the Company and the Group's Financial Controller; and Ms. Shen Lifeng has been appointed as an Independent Non-Executive Director of the Company and a member of each of the audit committee, the remuneration committee and the nomination committee of the Board. The biographical details of Mr. Wan, Mr. Qin and Ms. Shen are as follows:Mr. Wan Hongtao, aged 43, has been appointed as an Executive Director of the Company and the Group's Vice President. Mr. Wan is primarily in charge of the Company's operation management, strategic coordination and new business development. Prior to joining the Group, Mr. Wan previously held various positions in Shenzhen SEZ Construction and Development Group Co. Ltd. including a supervisor of Guangdong Special Construction Development East Investment Co. Ltd. and the deputy director of the Discipline Inspection and Supervision Office, the deputy director of the Office (Secretariat of the Board of Directors), and the deputy director of the Office (Secretariat of the Board of Directors) of SZCDG. Mr. Wan graduated from Nanjing University of Science and Technology with a major in Economic Law and a minor in Accounting in 2000, and obtained a Master's degree in Business Administration from Lanzhou University in 2016.Mr. Qin Wenzhong, aged 55, has been appointed as an Executive Director of the Company and the Group's Financial Controller. He is primarily in charge of the Company's internal audit, financial management, tax management and fund management, coordinating the financing of the Company and is responsible for coordinating domestic financing, etc. Prior to joining the Group, Mr. Qin previously held various positions in SZCDG and its certain subsidiaries, including the head of the cost contract audit department and the head of the financial management department of SZCDG. Mr. Qin is currently the chairman of the board of directors of Shenzhen Special Construction Development Asia Business Private Equity Investment Fund Management Co. Ltd. Mr. Qin obtained a Bachelor of Economics from Peking University in 1988.Ms. Shen Lifeng, aged 56, has been appointed as an Independent Non-Executive Director of the Company and a member of each of the Audit Committee, Remuneration Committee and Nomination Committee. Prior to joining the Group, Ms. Shen served as the legal director and deputy general manager of China Textile Import & Export Corporation Hebei Branch Company, the executive deputy general manager of Shenglun Import & Export Group Co. Ltd., the vice chairman of board of directors and the general manager of Shaanxi Kunzheng Mining Co. Ltd., the chief executive officer of Hong KongPorda Havas International Financial Communication Group. Ms. Shen is currently an executive director of China Tianbao Group Development Company Limited and an independent non-executive director of Hebei Construction Group Corporation Limited, shares of both companies are listed on the Stock Exchange. She is also the deputy secretary general of the Hong Kong State-owned Assets Investment Association and an independent director of SZCDG. Ms. Shen has solid basic professional knowledge of civil law, company law, financial law and other civil and commercial law. She has worked in multinational institutions in Hong Kong for 7 years and has 20 years of experience in large state-owned enterprises, foreign companies, multinational companies, and had been executives and independent directors of listed companies. Ms. Shen obtained a Master's degree in Sociology from the University of Hong Kong, a Master's degree in Economics from Hebei University, and a Ph.D in Civil and Commercial Law from Peking University.

Price target increased to HK$1.03

Up from HK$0.95, the current price target is an average from 2 analysts. New target price is 39% above last closing price of HK$0.74. Stock is down 14% over the past year. The company is forecast to post earnings per share of HK$0.26 for next year compared to HK$0.30 last year.