Citi has initiated a 30-day positive catalyst watch on China Jinmao (00817) while maintaining its 'Buy' rating and a HK$1.90 price target.
The bank advises investors to focus on the company's future earnings potential, a sustained sales upcycle extending into 2027, margin improvements from new projects, a streamlined and stable management structure, and support from plans to enhance sales and administrative expense efficiency.
The report notes that China Jinmao stands as a primary beneficiary of the sales recovery in core cities, possessing a market-verified advantage in the high-end product segment.
Following an 8% year-on-year sales growth recorded in the first half of 2026, sales growth is expected to accelerate in the third quarter, supported by the launch of more new projects from September and a low base effect.
Bolstered by a robust balance sheet and low financing costs, the company has the capacity to accelerate land bank acquisitions in the second half of 2026.
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