Citigroup: Maintain "Buy" rating on CHINA RES LAND(01109) with target price raised to 35.8 Hong Kong dollars.

Citi released a research report stating that it maintains a "buy" rating for CHINA RES LAND (01109), updating its core profit forecast for 2026 to 2027, and raising the target price from 35 Hong Kong dollars to 35.8 Hong Kong dollars. CHINA RES LAND's recurring business profit has surpassed property development for the first time, accounting for 52% of core profits last year. The management aims for the recurring business profit to account for 60% to 65% by 2030, with the profit target for shopping centers to achieve double-digit growth and a gross profit margin exceeding 70%; the target for asset management fee business is a compound annual growth rate of over 10% from 2026 to 2030, with a gross profit margin of 20% to 25%. The asset management platform continues to expand, with a target of managing assets exceeding 800 billion yuan by 2030; this year, the company plans to exit from 5 to 6 shopping centers through REIT funds, with an investment of 10 to 15 billion yuan. Citi points out that Rendu is positioned in the "world-class city investment and development operator" in the "Fifteenth Five-Year Plan", focusing on five key indicators of outstanding profit capability, stable financial management, advanced business model, leading market value, and strong brand strength, using property development, property investment, and asset management fee business as the three growth engines.