CLSA has revised its price target for CHINA RES LAND (01109) downwards from HK$42.4 to HK$40.8, while reaffirming its "Outperform" rating on the stock.

The firm noted that while the property developer might underperform leading state-owned peers in the near term due to concerns over earnings forecast revisions and a slowdown in shopping mall sales growth, its positive medium-to-long-term outlook remains unchanged. The company continues to be one of CLSA's top picks in the Chinese property sector for the coming 12 months.

The brokerage anticipates that CHINA RES LAND's first-half profit this year will be roughly flat year-on-year. This is primarily because an estimated RMB 3 billion disposal gain from the institutional REIT of its Chengdu MixC mall, coupled with growth in recurring business profit, is expected to offset the impact of weaker development property margins and increased impairment losses.

However, CLSA has cut its earnings forecasts for the years 2026 through 2028 by 18.2%, 10.1%, and 10.8% respectively. This adjustment reflects the drag from historical burdens, namely a significant gross margin decline caused by higher land costs and increased inventory impairments.