In "Major Banks," China International Capital Corporation (CICC) once again covers CHINA JINMAO with an "Outperform Industry" rating and a target price of 1.86 yuan

CICC published a research report indicating that it is once again covering CHINA JINMAO (00817.HK) with an "Outperform Industry" rating and a target price of HKD 1.86, corresponding to a 10% discount to the forecasted net asset value (NAV) per share for 2025. CICC believes that the company has shown significant positive changes in management and strategy, with controllable historical burdens and expected incremental flexibility, due to improved management and focused strategy providing a foundation for value reconstruction; incremental sales flexibility has emerged, and the risks associated with existing land reserves are controllable.

CICC has a positive expectation for the performance of the real estate sector of CHINA JINMAO over the 6 to 12 month horizon, where companies with good organizational management capabilities and a stable and improving fundamental base may become investment focuses, with CHINA JINMAO being one of the major targets in this field. Based on conservative assumptions regarding housing price trends, CICC expects the company's net asset value to reach RMB 25.6 billion by the end of 2025. If the company maintains steady land acquisition investments in 2026 and beyond, there will be considerable growth potential for the net asset value per share thereafter.

CICC expects the company's earnings per share for 2025 and 2026 to be RMB 0.10 and RMB 0.11, respectively, with a compound annual growth rate (CAGR) of 6.5% from 2024 to 2026; based on a 10% discount to the 2025 net asset value per share (corresponding to a 0.6 times price-to-book ratio for 2025), a target price of HKD 1.86 is set, implying a 29% upside potential