The research report "Big Banks" lowered the target price for YUEXIU PROPERTY to 4.1 yuan, awaiting re-evaluation catalysts

AASTOCKS
2026.04.01 07:47

HSBC Global Research report indicates that YUEXIU PROPERTY (00123.HK) will see a core profit decline of 84% in 2025 due to margin contraction and an increase in profits attributable to minority shareholders, with results in line with expectations. The bank believes the company lacks catalysts in the short term, and its stock price may continue to lag behind other quality developers, as management has not set sales targets for the first time and the land investment guidance is conservative. However, the group's sales and property price performance have been surprising, along with progress in C-REITs and positive news regarding new large projects in Guangzhou, which may stimulate a revaluation.

The bank has lowered its revenue forecasts for 2026 and 2027 by 2% and 7%, respectively, while also reducing its earnings per share forecasts for the same periods by 28% and 17%. However, the bank expects earnings to recover to 2024 levels by 2027, followed by a strong rebound in 2028. The target price has been reduced from HKD 5.2 to HKD 4.1, maintaining a "Hold" rating

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