Daiwa Capital Markets expects CHINA RES MIXC's core net profit to increase by 12% last year and raises the target price to 43 yuan

Daiwa Capital Markets published a research report predicting that CHINA RES MIXC (01209.HK) will see its core net profit grow by 12.2% year-on-year in 2025, with revenue expected to increase by 6.8% year-on-year. Among these, the revenue from property management services is expected to be dragged down significantly by a contraction in value-added service revenue, with an anticipated growth of only 1.4%. However, driven by the growth in shopping center revenue, the commercial operations revenue from last year is estimated to grow by 16.8%.

Considering the continued pressure on the value-added services business, the firm has lowered its earnings forecasts for CHINA RES MIXC for 2025 to 2027 by 3.4%, 6.4%, and 7.2%, respectively, maintaining a "Hold" rating and raising the target price from 41.1 yuan to 43 yuan