In "Major Banks," China International Capital Corporation lowered the target price for YUEXIU PROPERTY to 5.9 yuan, with inventory continuously being cleared and investment expansion being rational and steady

CICC's research report pointed out that YUEXIU PROPERTY (00123.HK) announced its 2025 performance: revenue remained flat year-on-year at RMB 86.46 billion (the same below), due to pressure on project profit margins, with gross profit margin declining by 2.7 percentage points year-on-year to 7.8%; selling and administrative expense ratio remained flat year-on-year at 4.5%; impairment losses on assets were recognized at RMB 1.6 billion (RMB 2.3 billion in 2024), coupled with a decline in the proportion of equity in recognized projects, core net profit decreased by 83.6% year-on-year to RMB 260 million, overall in line with market expectations.

Considering the company's inventory is continuously being cleared, CICC has lowered its profit forecast for YUEXIU PROPERTY for the next two years by 55% and 78% to RMB 270 million and RMB 320 million, respectively. It maintains an "outperform industry" rating, considering the company's sales base has resilience, and has lowered the target price by 14% to HKD 5.90, corresponding to 0.39 times and 0.38 times the price-to-book ratio for the next two years