Citigroup maintains a "buy" rating on CHINA RES LAND (01109) with a target price of HK$32.7.

Citigroup released a research report stating that CHINA RES LAND (01109) is moving towards becoming a large asset management platform. The bank expects that under the "3+1" strategy, the proportion of recurring profits of CHINA RES LAND will gradually increase. Therefore, they maintain a "buy" rating with a target price of 32.7 Hong Kong dollars. The bank pointed out that CHINA RES LAND's October mall retail same-store sales achieved positive growth, with an increase of 4%. The bank believes that CR Mixc may achieve a revenue growth of over 10% after 2025. In addition, the bank expects the gross margin of the top four self-developed projects of CHINA RES LAND to be 10%-15%; in terms of property investment, they anticipate about 10% natural growth and focus on return on invested capital (ROIC). It is expected that CHINA RES LAND plans to recover 30 billion RMB through mall REIT in the next three years.