Nomura: CHINA RES LAND's profit fell last year but was better than expected, lowering the target price to 32.6 yuan

AASTOCKS
2026.04.01 03:36

Nomura published a research report indicating that CHINA RES LAND (01109.HK) will perform better than the market's conservative expectations in 2025; during this period, overall revenue is expected to remain flat year-on-year, with recurring income rising by 3.7% to RMB 43.3 billion, while core net profit is expected to decline by 11.4% to RMB 22.5 billion, mainly due to a decrease in the confirmed gross profit margin of the property development business, which is still better than the company's original guidance of a year-on-year decline of 15% to 20%.

The firm has raised its sales forecasts for 2026 to 2027 by 2% to 3% and lowered its profit forecasts by 16% to 18% to reflect the timeline for the company's property sales confirmations, while expecting the company's recurring income to grow steadily during the same period. The target price has been lowered from HKD 35.8 to HKD 32.6, maintaining a "Buy" rating

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