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<Research> CICC Cuts Yuexiu Property (00123.HK) TP to HKD5.9; Inventory Continues to Be Cleared, Prudent and Rational Land Banking
Recommend 4 Positive 6 Negative 4 |
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CICC noted in a research report that Yuexiu Property (00123.HK) announced its 2025 results: revenue was RMB86.46 billion, flat YoY. Due to margin pressure from projects delivered, gross margin declined by 2.7 ppts YoY to 7.8%. The selling and administrative expense ratio remained flat YoY at 4.5%. The company recorded asset impairment losses of RMB1.6 billion (RMB2.3 billion in 2024). In addition, as the attributable interest proportion of booked projects declined, core net profit fell 83.6% YoY to RMB260 million, broadly in line with market expectations. Considering that the company is still clearing inventory, CICC lowered its earnings forecasts for this year and next year by 55% and 78% to RMB270 million and RMB320 million, respectively. The broker maintained an Outperform rating. Given the resilience of the companys sales fundamentals, it cut the TP by 14% to HKD5.9, corresponding to 0.39x and 0.38x price-to-book ratios for this year and next year, respectively. (hc/w) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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