Citigroup Raises CHINA JINMAO (00817) Target Price to HK$1.90, Reiterates "Buy" as Top Pick

Stock News
Mar 25

CHINA JINMAO (00817) has entered a growth cycle spanning 2025 to 2027, with projected contract sales growth of 16% and 7% in 2025 and 2026, respectively, elevating its industry ranking to eighth place. The company is accelerating land acquisitions, with 66% of new sites located in Beijing and Shanghai, while maintaining a robust financial position. Since 2024, it has added 43 new projects, achieving a net profit margin exceeding 10%, and has revitalized 15 plots through land swaps or repurposing. Citigroup maintains a "Buy" rating on the stock, listing it as a top pick, and has increased the target price from HK$1.80 to HK$1.90. The company aims to resolve 80% of its inventory issues by 2027. Management is optimizing and streamlining the organizational structure, centralizing procurement, and enhancing efficiency, which is expected to reduce sales and administrative expenses. Financing costs for new projects have decreased to 2.75%. Citigroup has adjusted its earnings forecasts for the company, noting support from its state-owned parent and a valuation of just 0.3 times forecast price-to-book ratio, representing a 65% discount to NAV and a forecast price-to-earnings ratio of 11 times for the current year.

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