China International Capital Corporation Highlights CHINA RES LAND's Business Model Transformation

Stock News
04/30

China International Capital Corporation (CICC) has released a research report noting that CHINA RES LAND (01109) recently announced a series of asset divestment plans, which may involve the issuance of multiple securitization products and have attracted market attention. While many are assessing the impact of these moves on short-term earnings, CICC believes it is more critical to gain a deeper understanding of the company's transformation strategy during the 15th Five-Year Plan period. CICC maintains its earnings forecasts for CHINA RES LAND for 2026-2027 unchanged, reiterates an "Outperform" rating, and a target price of HK$46.7. The firm also suggests that the valuation methodology for CHINA RES LAND should be updated to better reflect the company's future business structure and value. Consequently, CICC firmly believes that CHINA RES LAND is one of the most promising long-term investment targets in the sector, and its leadership in transforming China's real estate business model is noteworthy. The establishment of a multi-tiered REITs market is considered a cornerstone for building the asset management system. As CHINA RES LAND's corporate transformation enters a more challenging phase, further innovations are anticipated.

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