Morgan Stanley Predicts CHINA RES LAND's Sale of Chengdu MixC Stake to Yield Over 3 Billion Yuan in H1 2026, Reiterates "Overweight"

Stock News
Apr 23

Morgan Stanley has released a research report indicating that CHINA RES LAND's announcement to sell a majority stake in its wholly-owned Chengdu MixC shopping mall, with the valuation yet to be determined, marks another milestone in the company's transformation. The report estimates the total gross floor area of Chengdu MixC to be 287,000 square meters, with an approximate valuation between 7 and 8 billion yuan, comparable in scale and value to the Qingdao MixC sold in 2024. Morgan Stanley has assigned an "Overweight" rating to CHINA RES LAND with a target price of HK$39.3, maintaining its status as a Top Pick. Assuming a 70% stake sale at this valuation, Morgan Stanley anticipates the transaction could generate over 3 billion yuan in disposal gains in the first half of 2026, which would enhance visibility for earnings per share and dividend growth. The report further notes that with a recovery in development property margins, a 14% year-on-year increase in rental income for the first quarter, and this latest asset sale, confidence is strengthened in CHINA RES LAND's ability to achieve a mid-single-digit compound annual growth rate in dividends per share over the coming years.

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