Morningstar - China Evergrande Group (03333) Evergrande Is a Risky Play Based on Debt-Fueled Growth

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Morningstar

Phillip Zhong

EUR 101.80 For Business Accounts Only

Evergrande Is a Risky Play Based on Debt-Fueled Growth

We initiate coverage of China Evergrande Group, or Evergrande, with no moat and negative moat trend ratings and a fair value estimate of HKD 16 per share. Evergrande is a large real estate developer in China with a focus on mass residential projects. For a real estate developer to achieve long standing excess return, a company must have access to non-market based channels to acquire land bank, a proprietary development methodology to achieve fast asset turnover or uniquely branded product that c...

31/08/2017 12 EN

Underlying

China Evergrande Group

China Evergrande Group is an investment holding company. Through its subsidiaries, Co. is engaged in property development, property investment, property management, property construction and other property development related services in the People's Republic of China (which include resort complexes with hotels, sports arenas, and other tourist-related activities). Co.'s operations are organized along four business segments: property development, property investment, property management and other businesses. Co.'s other businesses include property construction and other property development related services.

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KYG2119W1069 Hong Kong Stock Exchange Cayman Islands

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Phillip Zhong

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Evergrande Is a Risky Play Based on Debt-Fueled Growth

CHINA EVERGRANDE sees a downgrade to Negative on account of less fundamental stars

China Evergrande Group: 1 director

Monthly LMI Update Independent Investment Research

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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