Dahua Jixian: Maintains "Buy" rating on CHINA RES LAND (01109) with downgraded earnings forecast and target price.

Dahua Jixian released a research report, stating that it is expected that China Resources Land (01109) will see a 18.8% year-on-year decrease in core net profit in 2025 due to the decrease in gross profit margin of real estate development business and delayed recognition of income from the listing of real estate trust funds. The profit margin of the real estate development business is expected to decrease from 16.8% in 2024 to 14.5%. However, the balance sheet is expected to remain stable. Dahua Jixian has lowered its profit forecasts for China Resources Land for the years 2025 to 2027 by 14.6%, 11.4%, and 10.7% respectively. The target price has been lowered from HK$37.51 to HK$35.40, but the company's core strengths in commercial operations and high-end residential development are still viewed positively. The rating remains "buy".