Ying Li

Ying Li: UOBK maintains Buy, raises TP to $0.42 (pegged to 40% discount to RNAV) from $0.40. Notes the stock has recovered ~40% from its $0.24 low, as positive central govt policies have provided tailwind for China property developers. Notes the PBOC had announced 2 RRR cuts in Feb and May this yr, and also reduced its benchmark lending rate by 25bps in Jun. Expects this is part of China’s slew of monetary loosening policies going forward to prevent the country from slipping into a significant slowdown. Notes, with these cuts, Chinese banks should roll out mortgages significantly by improving the mortgage approval process. Expects home buyers to pick up purchases in Ying Li’s projects with the increase in liquidity and excess in loan quotas. Technically, the house sees immediate resistance for this rebound at $0.335 (followed by $0.37), and immediate support at $0.28.