Founder: China Jinmao (00817) "recommended" rating for the proposed split of Sanya hotel into asset securitization preparations.

Founder released a research report stating that, for the first time, they are initiating coverage on CHINA JINMAO (00817) with a "buy" rating. CHINA JINMAO, backed by its parent company China National Chemical Corporation, has a financing cost advantage as a central state-owned enterprise. As the company continues to acquire more projects in first-tier and core second-tier cities, it may gradually strengthen its sales with its strong product offerings. Key points from Founder include: Revenue growth benefits from property development and JINMAO SERVICES improvement, with a slight increase in net profit attributable to shareholders excluding non-recurring items year-on-year. As of the first half of 2025, the company achieved revenue of 25.113 billion yuan, a 14% year-on-year increase, mainly due to increased income from property development and JINMAO SERVICES compared to the first half of 2024. Property development and land achieved revenue of 20.041 billion yuan, a 17% year-on-year increase, while JINMAO SERVICES achieved revenue of 1.783 billion yuan, a 20% year-on-year increase; as of the first half of 2025, the company achieved a net profit attributable to shareholders excluding non-recurring items of 1.123 billion yuan, a 2% year-on-year increase, mainly due to a 15% reduction in sales and management expenses compared to the same period last year. Sales amount is increasing year-on-year, with increased land expansion efforts. From January to November 2025, CHINA JINMAO achieved a total sales amount of 100.7 billion yuan, exceeding the 98.3 billion yuan for the full year of 2024, making them one of the few real estate companies to achieve sales growth; from January to November 2025, CHINA JINMAO achieved a total equity land acquisition amount of 33.9 billion yuan, compared to 18.7 billion yuan for the full year of 2024, reflecting their increased willingness to acquire land and their confidence in their ability to develop quality residential properties. REITs market expansion, company's sale of Sanya Ritz Carlton paving the way for securitization On November 21, 2025, the company announced that they will list the Sanya Ritz Carlton Hotel for sale with a base price of 2.265 billion yuan, with the goal of securitizing the assets. In December 2025, the Office of the National Development and Reform Commission released the "Catalogue of Real Estate Investment Trusts (REITs) Projects in the Infrastructure Sector (2025 Edition)", specifying that four-star and above hotel projects are included in the consumer infrastructure sector and can issue REITs in the infrastructure sector. The company's listing is another attempt to implement their strategy of "activating existing assets and optimizing new assets", and is expected to be another example of asset securitization following the listing of the Changsha Meixi Lake Lanshui City REITs. Risk Warning City operation projects may not meet expectations in negotiations again; sales recovery may not meet expectations; insufficient provision for impairment risks.