Citigroup: Yu Jianfa International (01908) has a "buy" rating, and sales volume in key cities has recovered.

Citigroup's research report stated that after successfully completing the developer handover, implementing employee stock incentives, and advancing urban renewal projects in March 2025, they have given a "buy" rating to Jianfa International (01908) with an estimated dividend yield of 6.4%. The bank has raised the valuation multiple from a forecasted P/E ratio of 9 times to 10 times this year, and the target price has been raised from HK$16.9 to HK$18.8 to reflect better sales performance and prospects. The report mentioned that Jianfa International's key city sales have recovered, with sales improving by 13% year-on-year in April and May, and a sales increase of 8.4% in the top ten key cities. The bank remains optimistic about the stock, citing reasons such as accelerated land reserves, with a new project in Shenzhen in June and a total of 4.5 billion RMB invested in land acquisition by May 2026. The company has added 82% of its land reserves after 2022, with better profit margins, low financing costs of only 3.15%, and a write-down provision of 17.2 billion RMB for the period from 2022 to 2025.