• FY20 revenue came in at 99% of our estimates as consumption recovers slower than expected.
• Expected TOP of Integrated Facility (IF) delayed again, to 1Q21.
• 30% improvement in footfall in Singapore and Macau in 2H20.
• We are downgrading our BUY rating to ACCUMULATE with a lower target price of S$0.68 (previously S$0.77) as we benchmark our valuation to 18.5x FY21e, the average of their peers. We lowered our revenue estimates for FY21e and FY22e by 6.5% and 6.2% respectively and consequently PATMI estimates for FY21e and FY22e is reduced by 11.5% and 10.4% respectively as the consumption recovery is taking longer to pan out.

Investment Summary Yongsheng Property, the predecessor of EVER SUNSHINE LIFESTYLE SERVICES GROUP, was established in 2002. Since 2003, it has provided property management services for properties developed by CIFI Holdings, mainly in Beijing and Shanghai, and continues to develop the eastern region. Since 2013, the company has begun to manage properties developed by third- party property developers. As of the end of 2016, the company's GFA under management has exceeded 10 million square meters, and the total number of property management services projects has exceeded one hundred. In the industry, it is a company that started expanding outward earlier. According to the "2020 China Top 100 Property Management Companies Research Report" released by China Index Academy, the company ranks 12th among the top 100 property management services companies in China.

Report type: Weekly Strategy ”Beware of Nikkei Average weighted average PBR, high PBR for IP asset valuation” The Nikkei Average broke through 30,000 points on 15/2 and closed at 30,467 points on 16/2.  This level is equivalent to 1.32 times the weighted average PBR (price-to-book-value ratio), which is weighted by market capitalization of the Nikkei Average’s constituent stocks, and is the highest level since 2nd February, 2018.  At that time, the "Trump tax cuts" were enacted in the US in...
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