Citigroup released a research report saying that China Resources Land (01109) is developing in the direction of a large-scale asset management platform. The bank expects China Resources Land's recurring profit ratio to gradually increase under the “3+1” strategy, so it maintains a “buy” rating, with a target price of HK$32.7.
The bank pointed out that China Resources Land achieved positive growth in retail same-store sales in the shopping mall in October, an increase of 4%. The bank believes CR
Mixc is likely to achieve revenue growth of 10% or more after 2025. In addition, the bank expects sales of China Resources Land's top four self-development projects to have an estimated gross margin of 10% to 15%; in terms of investment properties, it is expected to grow naturally by about 10% and focus on return on capital (ROIC); it is expected that China Resources Land plans to recover 30 billion yuan through shopping mall REITs within three years.
