HC Group (2280.HK) Result lower than expected, still in the transition April 15, 2019 255

PSR Recommendation: BUY Status: Maintained
Target Price: HKDHKD5.79

Investment Summary
HC Group is an information and B2B e-commerce service company in China. Its main
businesses include: transaction, data and information services. Assuming 2019F P/E
ratio to be 22x (the average of the past five years is 24x, we think 22x is within the
reasonable range), we derive the TP to be HK$5.79, 13.6% lower than our previous TP to
reflect the slower progress of transition, and maintain a “Buy” rating, with 33.7%
potential upside.. (Closing price at 11 Apr 2019)

About the author

Profile photo of Terry Li

Terry Li
Investment Analyst

Graduated from Lingnan University, with Master of Science in International Banking and Finance and Bachelor of Business Administration respectively. Specializes in analyzing company fundamentals and valuation to explore investment opportunities in TMT, Education and Financial industry.

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