2025-05-29-Jefferies-沃特金·琼斯（WJG）_初步观点_2025年上半年业绩_7页_104kb

The provided content is an equity research report by Jefferies on Watkin Jones, covering its financial performance, valuation, and market outlook. Below is a concise summary of the key points:

• Company Overview: Watkin Jones is a residential developer specializing in purpose-built student accommodation (PBSA) and private rented accommodation (PBPRA). Established in 1791 as a family business, it offers services from site identification to asset management.

• Valuation and Rating: The equity research assigns a HOLD rating with a current price of 35.75p and a price target of 33.50p, indicating a potential 6% downside. Valuation is based on 2027 P/E multiples (e.g., 6.0x for BTR, 5.5x for PBSA), but the report downgrades its target amid market challenges.

• Financial Performance: First-half 2025 (1H25) results met guidance with adjusted EBIT of £6m, up from -£0.4m in 1H24. However, sales remain strained in a challenging market, and reaching full-year 2025 consensus requires strong momentum, with FY26 consensus £15-20m needing even more.

• Business Outlook: Key to success is securing forward fund agreements, notably for the Glasgow asset. New projects include submitted planning for 722 PBSA and co-living beds across two schemes, expected for sale in FY26. Cash management is priorities, with net cash rising to £73m.

• Major Risks: Success hinges on securing land for construction, demand for PBSA and PBPRA at desired margins. Analysts highlight market uncertainties.

• Analyst Notes: Jefferies analysts certify their views are independent and free from compensation bias toward recommendations. Recent rating history shows a downward trend, with the HOLD rating initiated recently.

Overall, Watkin Jones is seen as potentially undervalued but faces execution risks, with the HOLD rating reflecting balanced caution amid improving financial metrics.