UBS: Upgrades Yuexiu Property (00123) rating to "Buy", raises target price to 6.5 Hong Kong dollars.

UBS released a research report stating that the rating of YUEXIU PROPERTY (00123) has been upgraded from "Neutral" to "Buy", with the target price raised from 5 Hong Kong dollars to 6.5 Hong Kong dollars. The bank mentioned that YUEXIU PROPERTY has a relatively high-quality land reserve (relatively new), actively acquires land, and is active in core cities. The bank has increased its forecast for the group's gross profit margin in the next two years by 0.3 percentage points and raised the profit forecast for the period by 5% to 20%. UBS pointed out that after four years of downturn, the real estate industry in first-tier and core second-tier cities in China is gradually showing signs of stability. After China relaxed the price ceiling measures in the middle of last year, developers are more motivated to improve the quality of their properties and increase differentiation from neighboring second-hand homes. The bank raised its forecast for new home sales volume in mainland China in the next two years by 7% to 16% and raised its forecast for existing home sales by 7% to 10%. It expects national property prices to stabilize earlier than the beginning of 2026, originally expected in mid-2026.