HSBC Research indicates that Sunac has more relative value compared to CHINA RES MIXC, but lowers Sunac's target price to 39 yuan

HSBC Global Research indicates that China Resources Land (01109.HK) currently offers higher relative value compared to China Resources Mixc (01209.HK), based on the latter's 60% increase since last year.

The bank pointed out that the preference for China Resources Land over China Resources Mixc is due to reasons including the latter's relatively crowded trading showing that the market has upward space for China Resources Land, the V-shaped rebound in earnings after the impairment impact ends brings upward space for dividends, the growth space for market share under the real estate recovery, and that China Resources Land is a major beneficiary of capital recycling. The bank also mentioned that the relatively pessimistic view on China Resources Mixc is due to the market consensus earnings forecast being overly optimistic, the current valuation being only reasonable, and the stock lacking sensitivity to retail sales growth.

The bank maintains a "Buy" rating on China Resources Land, with the target price lowered from HKD 43 to HKD 39. It maintains a "Hold" rating on China Resources Mixc with a target price of HKD 47 unchanged