Caitong Securities Co.,Ltd. released a research report stating that CHINA RES LAND (01109) is expected to achieve net profit attributable to shareholders of 25.9 billion yuan, 26.7 billion yuan, and 28.2 billion yuan for 2025-2027 respectively, corresponding to PE ratios of 8.3x, 8.1x, and 7.7x. The firm initiates coverage with a "Buy" rating.

In the first half of 2025, the company's revenue structure from development sales and recurring business (commercial real estate + light asset management + ecosystem elements) was 2:8, while core net profit structure was 4:6.

The report indicates that the company's development sales focus on high-tier cities with optimized sales-investment-financing structure. In the first half of 2025, sales achieved 110.3 billion yuan, down 12% year-on-year but outperforming the broader market. Tier-1 and tier-2 cities accounted for 93% of sales, with tier-1 cities representing 46%. Settlement gross margin rose to 15.6%, expected to gradually stabilize and recover. For investment, 100% of new investments were in tier-1 and tier-2 cities, while existing development land reserves in tier-1 and tier-2 cities comprised 70%. Regarding financing, the average cost decreased to 2.8%, maintaining the lowest level in the industry.

Furthermore, CHINA RES LAND leads in commercial real estate operations, with light asset management showing steady growth and ecosystem elements accelerating transformation. In the first half of 2025, mall retail sales increased 20.2% year-on-year, with same-store growth of 9.4%. Occupancy rate rose to 97.3%, driving rental income growth of 9.9% year-on-year. Nearly 90% of the company's malls rank among the top three locally in retail sales, with commercial influence maintaining the leading position. The company plans to open 22 new malls from 2025-2028.

In light asset management, China Resources Mixc Living continues to grow in both area and performance, with market capitalization ranking first in the property management industry. Ecosystem elements are positioned as transformation development accelerators, building synergy and coordinated progress across all business segments.