J.P. Morgan lowered its target price for China Resources Land (CRL)(01109) to HK$44.5 from HK$45.5 and maintained its "overweight" rating.
The research house likes CRL despite the outperformance year-to-date, mainly because the market has gone overly bearish on its potential margin squeeze, and JPM expects more earnings upgrades to come.
JPM said the potential spin-off of IP (investment properties) and property management will become some key positive catalysts over the next 12-18 months. It thinks 2020 is the best timing for the spin-off to happen as most new openings are done, new malls' operating matrix is good and global yield may also be coming down.
WoW WoW星期三：健康網購產品低至$99 (只限今天)► 立即行動
