Citigroup: China Resources Land (01109)'s mid-term core profit is steady, and the target price rose slightly to HK$43.1

The Zhitong Finance App learned that Citibank released a research report saying that China Resources Land (01109)'s mid-term core profit increased 1.6% year-on-year to 10.16 billion yuan. It was the only developer in the industry that achieved profits of more than 10 billion yuan in the first half of the year and that its performance was basically flat, reflecting its platform advantages and cross-business synergy. Recurring business contributed 6.65 billion yuan to core profit during the period, contributing about 65.5% to core profit, accounting for an increase of 5.3 percentage points over the previous year. Citigroup reaffirmed China Resources Land's “buy” rating. The target price was slightly raised from HK$43 to HK$43.1, a discount of about 40% per net asset value compared to the 2026 forecast.

Management revealed that every year, 5 to 6 mature assets will be recycled through the REIT platform, involving about 10 billion to 15 billion yuan, which can release profits of 5 billion to 6 billion yuan, and plans to add 6 to 7 shopping malls every year. The target is to reach 127 shopping malls in operation by 2030, and the REIT platform assets will reach 60 billion yuan.