Everbright Securities Company Limited released a research report stating that CHINA JINMAO (00817) has strong brand influence, impressive recent sales growth, optimized operational efficiency, and significantly reduced expense ratios during the period. The company has raised its net profit forecasts for 2025-2027 to 12.5, 14.3, and 15.8 billion yuan (previously forecasted at 12.2/13.4/14.6 billion yuan). The current stock price corresponds to 2025-2027 PE (basic) valuations of 13.7/12.0/10.8 times respectively. The "buy" rating is maintained.

Everbright Securities Company Limited's main viewpoints are as follows:

Event: The company released unaudited sales data for September 2025

1. In September 2025, the company achieved contracted sales of 9.8 billion yuan and contracted sales floor area of 493,000 square meters.

From January to September 2025, the company achieved contracted sales of 80.69 billion yuan and contracted sales floor area of 3.675 million square meters (excluding property rental income).

2. As of September 30, 2025, the company's subscribed (unsigned) sales amount totaled 640 million yuan.

Commentary: Brand value drives development, sales performance continues to shine, expense ratios decline significantly

Brand value drives development

CHINA JINMAO has been selected as one of "China's 500 Most Valuable Brands" for 21 consecutive years, demonstrating stable brand appeal. In 2025, Jinmao was again listed with a brand value of 74.2 billion yuan, ranking 170th, with brand value increasing by nearly 8 billion yuan compared to last year and ranking up one position. The company consistently leads the construction of "good houses" with quality commitment, and through the excellent presentation of its "Golden Prosperity" product series, it has driven independent market performance through quality upgrades against the backdrop of overall declining real estate industry sales.

Sales performance continues to shine

Brand value empowerment combined with improved operational efficiency has led to consistently outstanding recent sales performance. From a marginal perspective, in July/August/September 2025, the company's monthly contracted sales were 8.46/9.08/9.8 billion yuan respectively, with monthly year-on-year growth of +49.5%/+46.5%/+39.9% respectively. In Q3 2025, the company's contracted sales reached 27.34 billion yuan (18.86 billion yuan in the same period of 2024), contracted sales area was 1.281 million square meters (1.008 million square meters in the same period of 2024), and contracted sales average price was 21,346 yuan per square meter (18,720 yuan per square meter in the same period of 2024), showing a trend of both volume and price increases in marginal sales. Cumulatively, from January to September 2025, the company's sales amount was 80.69 billion yuan (cumulative year-on-year +27.3%), sales area was 3.675 million square meters (cumulative year-on-year +6.0%), and sales average price was 21,958 yuan per square meter (cumulative year-on-year +20.1%).

Expense ratios decline significantly

The company's 2025 interim results report shows that management expenses for January-June 2025 were 1.22 billion yuan (1.29 billion yuan in the same period of 2024), with a management expense ratio of 4.8% (5.8% in the same period of 2024). Sales expenses for January-June 2025 were 830 million yuan (980 million yuan in the same period of 2024), with a sales expense ratio of 3.3% (4.5% in the same period of 2024). While the company's sales performance improved against the trend, expense ratios declined significantly, which not only reflects the company's organizational structure optimization and operational efficiency improvement, but also clearly demonstrates the value empowerment of the "Jinmao brand."

Risk Warning: Risks of sales and land acquisition falling short of expectations, asset disposal falling short of expectations, market decline exceeding expectations, etc.