Kaiyuan Securities has released a research report maintaining a "Buy" rating on CHINA RES LAND (01109), following the company's release of its December 2025 operational data. The company achieved growth in both revenue and profit for the first half of the year, with its gross profit margin on revenue recognition bucking the trend to rise, while the quality and efficiency of its recurring businesses saw dual improvement. The company demonstrated stable sales and land acquisitions, with its market share continuing to increase. Ample land reserves secure future revenue recognition performance, and the profitability of its recurring businesses remains high. The main points from Kaiyuan Securities are as follows:
CHINA RES LAND's sales ranking remained firmly within the top three, with December sales data exceeding expectations for growth. For the full year 2025, the company achieved sales revenue of 233.6 billion yuan, a year-on-year decrease of 10.5%, while its sales ranking held steady in the top three. The sales area reached 9.225 million square meters, down 18.6% year-on-year. The average selling price was 25,322 yuan per square meter, representing a 9.9% increase compared to the previous year. Notably, in December alone, the company's sales revenue and area surged by 28.1% and 29.1% year-on-year, respectively. Key projects drove this performance, including the Shenzhen Bay Yunxi project, which sold 13 billion yuan on its first day, and the Beijing Runyuan project, which sold 3.5 billion yuan on its debut. Additionally, the Shanghai Waitan Ruifu and Yunqi Binjiang projects saw further releases in December, with sales in first-tier cities constituting a significant portion.
The company was active in land acquisition, focusing on high-tier cities for investment. Throughout 2025, CHINA RES LAND acquired 33 land parcels, corresponding to a total planned gross floor area of 3.39 million square meters. The total land cost amounted to 91.7 billion yuan, of which the equity-acquired land cost was 68.3 billion yuan, resulting in an equity acquisition ratio of 74%. The average land acquisition price reached 27,024 yuan per square meter, with a land acquisition intensity of 39%. Structurally, acquisitions in first-tier cities accounted for 66.6% of the total, while second-tier cities contributed 28.3%, indicating a relatively high overall safety margin for the project portfolio.
Recurring income showed steady growth, and the China Resources Youchao REIT successfully completed a follow-on offering. For the full year 2025, the listed company achieved recurring income of 51.15 billion yuan, up 6.5% year-on-year. Within this, rental income from operating properties (shopping malls, office buildings, and hotels) reached 32.94 billion yuan, a significant increase of 12.8% year-on-year. In December alone, recurring income was 5.29 billion yuan, up 0.8% year-on-year, with rental income from operating properties at 3.01 billion yuan, rising 9.4% year-on-year. In January 2026, a successful listing ceremony was held for the expansion of the China Resources Youchao REIT. This expansion marked the first follow-on offering for the ChinaAMC China Resources Youchao REIT, with an offering price of 2.53 yuan per unit and a subscription rate reaching 99.51%. The total funds raised amounted to approximately 1.1329 billion yuan (excluding interest during the fundraising period). After deducting relevant reserved fees, the entire amount will be used to acquire the high-quality Shanghai Maqiao project from under the China Resources Youchao umbrella.
Potential risks include policy support falling short of expectations, a slower-than-expected recovery in industry-wide sales, and the company's financing not meeting expectations.
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