UBS: China Resources Land (01109) rated as top pick in the industry, target price raised to HK$42.

UBS released a research report stating that CHINA RES LAND (01109) is at a crucial transitional period, with its current stock price discounted by 50% compared to its net asset value and its price-to-earnings ratio being one of the lowest among property stocks. The report suggests that the market is significantly undervaluing its worth, and anticipates that the establishment of Real Estate Investment Trusts (REITs) with fewer restrictions on fund usage will help developers accelerate capital circulation. The bank also points out that if Ronland changes its dividend policy to fixed dividends per share (DPS), it will increase visibility on dividend returns and reduce capital reinvestment in development business, both of which will serve as value-boosting catalysts. UBS raised CHINA RES LAND's target price from HK$37 to HK$42, maintaining a "buy" rating and listing it as the top pick in the industry.