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<Research>BofAS Expects Policy Anticipation to Provide Strong Support for CN Property Mkt; Top Picks CHINA OVERSEAS/ C&D INTL GROUP
Recommend 64 Positive 98 Negative 48 |
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The 1H25 results of China's real estate industry were weak as expected (reflecting the decline in home prices over the past 4 years), BofA Securities issued a research report saying. However, the broker saw 2 bright spots: stabilization in HoH profit margins, and some top developers like CHINA OVERSEAS (00688.HK) and C&D INTL GROUP (01908.HK) are more confident in improving profit margin; some management teams are more optimistic than expected about further supportive policies from the central government. BofA Securities believed that policy expectations may provide strong support for the industry in the coming month, but more decisive policies are needed to break the trading range. The broker raised its forecasts for CHINA OVERSEAS and C&D INTL GROUP, and lifted its target prices for both stocks by 5% and 2% each. Given the solid fundamentals, BofA Securities listed them as its sector top picks The broker kept ratings at Underperform for CHINA VANKE (02202.HK) and CHINA JINMAO (00817.HK) on poor financial outlooks. In BofA Securities' report covering Chinese developers, 1H25 core profits declined by about 50%, with C&D INTL GROUP and BINJIANG GP (002244.SZ) as the exceptions posting YoY profit growth. BofA Securities raised its forecasts for CHINA RES LAND (01109.HK) and C&D INTL GROUP, but lowered its FY2025 forecasts for LONGFOR GROUP (00960.HK) due to its 1H25 performance. The latest ratings and target prices of the sector are listed in a separate table. AASTOCKS Financial News Website: www.aastocks.com |
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