Goldman Sachs: Lowering the target price of China Resources Land to HKD 92.3, risk return slightly tilting towards the positive side.

Goldman Sachs released a research report stating that the development prospects of China's industrial technology sector may differentiate under the impact of US tariffs. Since the US implemented retaliatory tariff policies earlier this month and imposed tariffs on multiple countries, the stock price of Chuangke Industrial, which has a large exposure to the US market, has fallen by 17%. Based on factors such as increased sales costs in the US and rising product prices weakening the purchasing power of US customers, Goldman Sachs has lowered Chuangke's earnings forecast for 2025-2030 by 16% to 26%. However, the bank pointed out that Chuangke Industrial has shown resilience during previous tariff disputes, having relocated production lines to Vietnam in 2019, resulting in a 0.5 percentage point increase in gross profit margin that year and a stable balance sheet. Considering that the cost increase of the company under the new tariff policy is controllable, it is predicted that Chuangke's US sales costs will increase by 11%, with 90% of the costs being passed on to customers. Goldman Sachs maintains a "buy" rating on Chuangke with a target price lowered to HK$92.3, overall, the risk-return profile is slightly positive.