Caitong: China Resources Land (01109) is rated as "buy" with leading position in the commercial real estate industry.

Caitong released a research report stating that it is expected that CHINA RES LAND (01109) will achieve a net profit attributable to shareholders of 25.9 billion, 26.7 billion, and 28.2 billion yuan in 2025-2027, with corresponding PE ratios of 8.3, 8.1, and 7.7 times. The company has been initiated coverage with a "Buy" rating. In the first half of 2025, the company's development sales and regular business (operating real estate + light asset management + ecological elements) revenue ratio is 2:8, and the core net profit ratio is 4:6. The report states that the company's development sales focus on high-energy cities, with an optimized sales-to-investment ratio. In the first half of 2025, sales reached 110.3 billion yuan, a year-on-year decrease of 12%, outperforming the overall market; the sales in first- and second-tier cities accounted for 93%, with first-tier cities accounting for 46%, and the settlement gross profit margin increased to 15.6%, expected to gradually stabilize and recover. Investment: 100% of new investments are in first- and second-tier cities, with existing development land reserves in first- and second-tier cities accounting for 70%. Financing: average cost reduced to 2.8%, maintaining the lowest level in the industry. Furthermore, CHINA RES LAND is a leader in the operating real estate industry, with steady growth in light asset management and accelerated transformation of ecological elements. In the first half of 2025, retail sales in shopping malls increased by 20.2% year-on-year, same-store sales increased by 9.4% year-on-year, and the rental rate rose to 97.3%, leading to a 9.9% year-on-year increase in rental income. Nearly 90% of the company's mall retail sales rank in the top three in the local area, maintaining a strong commercial influence and planning to open 22 new shopping malls from 2025 to 2028. The area and performance of Changcheng RES MIXC, a leading light asset management entity, continue to grow, with its market value ranking first in the property management industry. The positioning of ecological elements as a transformation accelerator is speeding up, fostering synergy among various sectors.