[ET Net News Agency, 26 February 2020] Nomura lifted its target price for China
Resources Land (CRL)(01109) to HK$46.5 from HK$45.7 and maintained its "buy" rating.
The research house said CRL has a good land bank at a prime location (67% in tier 1 and
in core districts in tier 2 cities), which provides a solid foundation for a 10%
contracted sales CAGR in 2020-21.
Nomura sees high upside risks to its sales growth as it might turn more aggressive on
growth under the new chairman Wang Xiangming. Margin normalization is the key concern for
the company. However, it may record EPS CAGR of 19% in 2020-21 despite GPM likely falling
to 31% in 2021 (versus 37% in 2019) thanks to strong delivery. The spin-off of the
property management subsidiary in 2H should also drive a re-rating. (KL)