BofA Securities released a research report stating that the mainland property market remains in the early stages of recovery. In April, residential contract sales on the mainland increased by 18% year-on-year, with more signs of stabilization emerging in first-tier city markets. Consequently, the firm has raised the average target price for high-quality developers by 13%. The bank's top picks are CHINA RES LAND (01109), CHINA OVERSEAS (00688), and C&D International Group (01908). It is also positive on property management firms CHINA RES MIXC (01209) and Greentown Service (02869). BofA Securities raised the target price for CHINA RES LAND from HK$43 to HK$49, for CHINA OVERSEAS from HK$14.5 to HK$17, and for C&D International from HK$17.2 to HK$20, all maintaining a "Buy" rating. The bank also increased the target price for Yuexiu Property (00123) from HK$4.6 to HK$5, with a "Buy" rating. The report noted that while its previously non-consensus bullish view is gradually gaining more market acceptance, overall investor positioning remains light, with many still skeptical about the sustainability of the recovery. The bank expects that although a significant rebound in property prices seems unlikely, earnings will recover steadily as impairment provisions decrease and the drag from low-margin inventory diminishes. For CHINA RES LAND, CHINA OVERSEAS, and C&D International, the bank forecasts earnings per share growth of approximately 17% for the 2028 fiscal year. If profit margins normalize, it believes there is potential for over 20% upside in earnings over time.