Equity Analysis /
Hong Kong

HK : China Resources Land - Aiming to double sales in five years

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    Jeffrey Mak
    Will Chu
    21 January 2021
    Published byCGS-CIMB

    CR Land aims to double its contracted sales in FY21-25F, equivalent to a 15% CAGR, which is relatively fast growth compared with its key peers. Despite lower gross margin expected in the years ahead, management still expects double-digit net profit growth on faster turnover. We expect its rental income to double by 2025 due to opening of new malls. We reiterate our Add call with a TP of HK$43.1. It is one of our top picks among the large caps in the sector.