CHINA RES LAND's stock surged 5.01% during intraday trading on Monday, driven by positive analyst actions and robust operational performance.
The rally follows Morgan Stanley raising its target price for the stock from HK$39.3 to HK$42.6 while maintaining an "Overweight" rating and top pick designation. The bank cited that the company's development business gross margin has bottomed out and that its rental segment is expected to contribute approximately 60% of recurring earnings by 2028, supporting a potential valuation re-rating.
Furthermore, the company reported strong sales figures, with April contracted sales surging 50% year-over-year and Golden Week subscription sales growing over 20% year-over-year, significantly outperforming peers. Morgan Stanley also raised its core earnings estimates for the next three years by 1%-3%. Other major banks, including Citi and JPMorgan, have also expressed positive views on the stock, contributing to the bullish sentiment.
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