Everbright Securities released a research report maintaining a "buy" rating for China Resources Land (01109). Considering that nationwide real estate sales remain in a downward trajectory with evident urban and regional differentiation, and the company's commercial property sales amount declined by double digits in the first eight months following industry trends, the firm has revised down its net profit attributable to shareholders (basic) forecasts for 2025-2027 to RMB 24.74/25.27/25.53 billion (previously RMB 26.25/28.15/28.93 billion). At current stock prices, the corresponding 2025-2027 PE valuations (basic) are 8.5/8.3/8.3 times respectively. The company enjoys strong brand reputation, focuses property development on core cities, and asset operations provide stable cash flow with significant credit advantages.

Event: The company released unaudited operational data as of August 31, 2025. In August 2025, the company achieved contract sales of RMB 13.2 billion, down 13.2% year-over-year; contract sales area of 539,000 square meters, down 26.7% year-over-year. For January-August 2025, the company achieved contract sales of RMB 136.8 billion, down 12.0% year-over-year; contract sales area of 5.12 million square meters, down 23.3% year-over-year.

Significant Increase in Average Selling Price with Focus on Core Markets From January to August 2025, the company achieved contract sales of RMB 136.8 billion, maintaining a stable top-three position in CRIC's sales rankings. In the first half of 2025, the company achieved contracted sales of RMB 110.3 billion (down 11.5% year-over-year), contracted sales area of 4.12 million square meters (down 20.9% year-over-year), and contracted average selling price of RMB 26,800 per square meter (up 11.9% year-over-year). Sales structure focuses on core markets with significant improvement in average selling prices, ranking among the top three in market share across 15 cities.

Regarding land acquisition, the company adheres to the "live within means" principle, reasonably controlling investment pace while focusing on first and second-tier cities. In the first half of 2025, equity investment reached RMB 32.28 billion with newly added land reserves of 1.48 million square meters, effectively supplementing quality land reserves in core cities. As of June 30, 2025, the company's total land reserves reached 48.95 million square meters.

Steady Growth in Asset Operations with Enhanced Stable Cash Flow Contribution The company's asset operations segment maintains steady growth, significantly enhancing contribution to performance and long-term stable cash flow. In the first half of 2025, asset operations segment revenue reached RMB 12.11 billion (up 5.5% year-over-year).

1) As of June 30, 2025, shopping centers' total gross floor area reached 11.85 million square meters (up 13.3% year-over-year) with 94 operational shopping centers generating retail sales of RMB 110.15 billion (up 20.2% year-over-year) and overall operating profit margin of 65.9%, reaching a new historical high.

2) As of June 30, 2025, office buildings' total gross floor area reached 1.46 million square meters (up 7.8% year-over-year) with 23 operational office buildings maintaining an average occupancy rate of 74.5% in the first half, sustaining industry-leading performance.

Significant Credit Advantages with Optimized Financing Costs The company maintains the "live within means" principle in capital management, consistently prioritizing cash flow security as the lifeline of corporate development. As of June 2025, the company held cash reserves of RMB 120.24 billion, with net interest-bearing debt ratio at 39.2%. The weighted average financing cost decreased by 32 basis points from the end of 2024 to 2.79%, maintaining the industry's lowest level. Financing costs have been optimized with significant credit advantages.