Caitong Securities Maintains "Buy" Rating on CHINA RES LAND (01109), Accelerating Transformation into Ecosystem Builder

Stock News01-23 16:12

Caitong Securities released a research report stating that CHINA RES LAND (01109) ranks at the forefront in property development sales, demonstrating proactive investment strategies and possessing ample land reserves. The company's recurring businesses boast a deep moat, with its commercial property segment leading in both scale and quality, while property management and commercial management operations develop steadily; its ecosystem businesses are actively promoting the company's transformation and development. The brokerage forecasts the company's core net profit for 2025-2027 to be RMB 20.94 billion, RMB 23.70 billion, and RMB 25.89 billion, respectively, corresponding to a P/E ratio of 8.7x, 7.7x, and 7.0x. It maintains a "Buy" rating.

On January 21, 2026, the company announced via its official WeChat account the official launch and comprehensive upgrade of its new official property life service platform, "Xiao Run+". This marks a strategic leap for the company's property life service platform from a "single sales function" to providing "full lifecycle services."

The "Xiao Run+" WeChat mini-program platform integrates five major business areas: the home purchasing process, homeowner services, community operations, omni-channel brokerage, and membership benefits. It encompasses 13 core modules and 174 practical functions, seamlessly connecting various business domains such as property development, brokerage ecosystems, MIXC services, MIXC commercial properties, and urban resources. This provides customers with comprehensive services throughout the entire cycle, including property searching, selection, purchasing, handover, and occupancy.

As the industry transforms, prioritizing product, service, and technology is paramount. The company is transitioning towards becoming an ecosystem builder. Leveraging four core advantages—"ecosystem interconnection, full-cycle services, operational rejuvenation, and technological empowerment"—the platform strives to deliver an integrated "product-service-operation" experience, representing a significant leap in the company's transformation.

Full-year 2025 sales faced pressure, while increased rental income drove growth in recurring business revenue. The company achieved sales of RMB 233.6 billion in 2025, a year-on-year decrease of 10.5%; the sales area was 9.224 million square meters, down 18.6% year-on-year. Recurring income for 2025 reached approximately RMB 51.15 billion, up 6.5% year-on-year, within which rental income from operating investment properties was about RMB 32.94 billion, increasing by 12.8% year-on-year.

Risk warnings include the potential for continued pressure in the real estate market, new operating investment properties falling short of expectations, and a slower-than-expected recovery in offline consumption.

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