China Resources Land's Rising Recurring Profit Could Underpin Resilience

Dow Jones12:26

0426 GMT - China Resources Land's rising recurring profit and capital-recycling initiatives are likely to underpin the property company's resilience, DBS Group Research analysts say in a note. Recurring earnings now account for nearly 66% of its total core profit, offsetting the company's softer property-development business, they say. CR Land's target to open 29 malls by 2030 is likely to support recurring income growth, they add. Meanwhile, the company could exceed its annual 10 billion yuan-15 billion yuan asset-disposal guidance as it moves to list some assets through real-estate investment trusts, they add. DBS raises its target price to 41.30 Hong Kong dollars from HK$34.90 and maintains a buy rating. Shares fall 1.2% to HK$28.64.

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