Dahua Jixian: Raise the target price of Jiulongcang Real Estate (01997) by 25% to maintain the “buy” rating

The Zhitong Finance App learned that Dahua Jixian released a research report stating that the target price for Jiulongchang Real Estate (01997) was raised by 25% from HK$28.8 to HK$36, maintaining the “buy” rating. The bank raised its basic net profit forecast for 2026/2027/2028 by 17.3%/2.7%/2.1%, mainly considering: 1) earnings from the sale of Huifeng Plaza; 2) lower net debt forecast. Also, the 2026/2027/2028 dividend forecast per share was raised by 40%/40%/39% due to the higher payout ratio (90%).

The basic net profit of Wharf Land for the first half of 2026 increased 6.2% year on year to HK$3,311 billion, higher than the forecast, mainly due to a 26% decrease in borrowing costs and a real interest rate of 3.5%. The Board raised the dividend payout ratio from 65% to 90%, increasing the interim dividend per share by 42.4% to HK$0.94. This major adjustment shows that management has full confidence in the company.