Bank of America Securities: Raises target price for China Resources Land (01109) to HK$43, slightly better-than-expected performance last year.

Bank of America Securities released a research report stating that CHINA RES LAND (01109) exceeded expectations for the 2025 fiscal year performance, and reiterated a "buy" rating. It is optimistic about the growth of its rental income, which is benefiting from strong execution, a clear shopping mall development pipeline, and a more active capital recycling through commercial real estate investment trusts. The report points out that if the recovery momentum of the physical real estate market strengthens, CHINA RES LAND's property development business is expected to bring upside potential. It believes that the current valuation is attractive, with a forecasted P/E ratio of 8 times for the 2026 fiscal year, compared to over 20 times for C-REITs and about 16 times for its Hong Kong peers. Based on the upward adjustment of core profit estimates for the 2027 fiscal year and exchange rate factors, the target price has been raised from HK$39 to HK$43, an increase of 10%.