CICC: CHINA RES LAND (01109) business model transformation is worth paying attention to, maintain "outperform" rating in the industry.

CICC released a research report stating that recently CHINA RES LAND(01109) has announced a series of asset disposal plans, which may involve the issuance of multiple securitization products, attracting market attention. Although the market is exploring the impact of these actions on short-term profitability, the bank believes that a deeper understanding of CHINA RES LAND's corporate transformation during the 14th Five-Year Plan period is more crucial. CICC maintains its earnings forecast for CHINA RES LAND for 2026-2027 unchanged, maintaining an "outperform industry" rating with a target price of HK$46.7. At the same time, the bank believes that a new round of iteration should be carried out for the valuation method of CHINA RES LAND to more accurately reflect the company's future business structure and value. Therefore, it firmly believes that CHINA RES LAND is one of the most long-term investment-worthy targets in the industry, and its leading role in the transformation of the Chinese real estate business model is worth noting. The establishment of a multi-level REITs market is the cornerstone of asset management system construction. CR Enterprises' corporate transformation is entering a deep-water area, and there may be more innovations in the future.