Citi expects that the sales revenue from CHINA RES LAND's top four self-developed projects will have a gross margin of 10%-15%.
According to the Zhixin Finance APP, Citigroup released a research report stating that CHINA RES LAND (01109) is developing towards a large-scale Asset Management platform. The bank expects that under the "3+1" Global Strategy, the proportion of recurring profits will gradually increase, hence maintaining a "Buy" rating with a Target Price of HKD 32.7.
The bank pointed out that CHINA RES LAND achieved positive growth in same-store sales in October, with an increase of 4%. The bank believes that CR Mixc may achieve more than 10% revenue growth after 2025. In addition, the bank expects that the gross margin for the sales of the top four self-developed projects of CHINA RES LAND is estimated to be between 10%-15%; regarding investment properties, a natural growth of about 10% is expected, focusing on ROI; and CHINA RES LAND plans to recover 30 billion RMB within three years through mall REITs.
