EB Securities: Maintain a "buy" rating on China Resources Land (01109), a leading brand in asset operation.

EB SECURITIES issued a research report stating that the current national real estate sales are still in a downward trend, with significant differentiation between cities and regions. They have lowered CHINA RES LAND's (01109) 2026-2027 consolidated net profit (basic) forecast to 23.68/23.07 billion yuan (previously 25.27/25.53 billion yuan) and added a forecast for 2028 consolidated net profit (basic) of 23.89 billion yuan. The current stock price corresponds to a 2026-2028 PE valuation (basic) of 8.2/8.4/8.1 times. The company focuses its investments on core cities, is a leading brand in asset operation, and has a significant advantage in credit as a state-owned enterprise. They maintain a "buy" rating. EB SECURITIES' main points are as follows: Events: The company released unaudited operating data as of March 31, 2026. In March 2026, they achieved contract sales amounting to 22.42 billion yuan, a year-on-year decrease of 14.1%; and contract sales area of 594,000 square meters, a year-on-year decrease of 34.5%. From January to March 2026, they achieved contract sales amounting to 44.12 billion yuan, a year-on-year decrease of 13.8%; and contract sales area of 1,249,000 square meters, a year-on-year decrease of 36.9%. Leading brand in asset operation, stable cash flow contribution increase: In 2025, the operating income of the operating lease business segment reached 25.44 billion yuan (a year-on-year increase of 9.2%), with a core net profit of 9.87 billion yuan (a year-on-year increase of 15.2%). By the end of 2025, they had: 1) 98 operating shopping centers (with 82 retail sales ranking in the top three in the local market), total construction area of 12.42 million square meters (an 8.4% year-on-year increase), retail sales of 239.2 billion yuan (a 22.4% year-on-year increase), overall operating profit margin of 63.1%, reaching a new high; 2) 23 operating office buildings with a total construction area of 1.46 million square meters, an average occupancy rate of 77.7% (a 2.8 percentage point year-on-year increase); 3) 790,000 square meters of hotel total area (a 1.2% year-on-year increase) with an average occupancy rate of 67.3% (a 3.1 percentage point year-on-year increase). In 2023, the company realized accumulated rental income of 91.6 billion yuan (a 14.0% year-on-year increase). Significant increase in average sales price, investment structure focused on core: In 2025, the company's sales scale ranked among the top three in the industry, with sales amounting to 233.6 billion yuan (a 10.5% year-on-year decrease), sales area of 9.22 million square meters (an 18.6% year-on-year decrease), and an average sales price of 25,300 yuan per square meter (a 9.9% year-on-year increase); from January to March 2026, the sales amount was 44.1 billion yuan (a 13.8% year-on-year decrease), contracted sales area of 1.25 million square meters (a 36.9% year-on-year decrease), and an average sales price of 35,300 yuan per square meter (a 36.5% year-on-year increase). The company's sales structure focuses on core cities, with a significant increase in the average sales price, and their market share ranking in the top three in 18 cities. In terms of land acquisition, they adhere to the principle of "taking in as much as going out," reasonably grasping the investment pace, focusing on first-tier and second-tier cities, acquiring 33 projects in 2025, with equity investment amounting to 67.37 billion yuan, with investments in five major core cities such as Beijing and Shanghai accounting for nearly 80%. Significant advantage in state-owned enterprise credit, continued optimization of financing costs: The company has always adhered to prudent financial principles, with cash flow safety as the lifeline of corporate development. As of the end of 2025, they held cash reserves of 117 billion yuan, a net interest-bearing debt ratio of 39.2%, a weighted average financing cost down 39 basis points to 2.72% compared to the end of 2024, maintaining the lowest tier in the industry. Financing cost optimization, significant credit advantage. Risk Warning: Sales and land acquisition are lower than expected, operating business performance is lower than expected, industry downturn exceeds expectations, etc.