Agile Group Holdings Limited (Initial Issuer Report)

The Issuer Rating reflects Agile Group Holdings Limited’s (Stock code: 3383.HK) (“Agile” or “the company”) national footprint with a focus on the eastern and southern regions of China, above-average profitability, and diversifying revenue source. However, Agile’s rating is constrained by its moderately high financial leverage, moderate but improving interest coverage, and exposure to short-term borrowings and alternative financings.

The Stable Outlook reflects our expectation that Agile will maintain its national market position and moderate debt expansion pace in tandem with its contracted sales scale.  At the same time, we expect Agile to maintain its stable and above-average profitability through its existing low-cost land portfolio and continue diversifying its revenue and funding channels, as well as reducing its reliance on short-term borrowings in the next 12-18 months.