Caitong: Maintain "buy" rating for CHINA RES LAND (01109) as it accelerates its transformation into an ecological builder.

Caitong released a research report stating that CHINA RES LAND(01109) ranks among the top in property sales, is actively investing, and has ample land reserves; its recurring business has a strong moat, with leading commercial scale and quality, steady development in property management and business management, and ecosystem business promoting transformational development. The bank predicts that the company's core net profit for 2025-2027 will be 20.94 billion, 23.70 billion, and 25.89 billion respectively, with corresponding PEs of 8.7x, 7.7x, and 7.0x. The bank maintains a "buy" rating. Caitong's main points are as follows: Event On January 21, 2026, the companys official WeChat account announced: CHINA RES LAND's new official real estate life service platform "Xiaorun+" has been officially upgraded and is now fully online. The company's real estate life service platform has made a strategic leap from "single sales function" to "full life-cycle service." The "Xiaorun+" WeChat mini-program integrates five major businesses including the homebuying process, owner services, community operations, omni-channel brokerage, and membership benefits, covering 13 core modules and 174 practical functions, linking real estate development, brokerage ecosystem, Wanxiang services, Wanxiang commerce, city resources, and other all-domain businesses to provide customers with a full-cycle service for finding, choosing, buying, delivering, and moving in. Industry transformation prioritizes products, services, and technology, as the company transitions towards becoming an ecosystem builder Through four core advantages of "ecosystem connectivity, full life-cycle service, operational renewal, and technological empowerment," the platform strives to provide customers with an integrated "product-service-operation" experience, marking an important leap for the company towards becoming an ecosystem builder. Sales pressure in 2025, increase in rental income driving growth in recurring business revenue In 2025, the company achieved sales of 233.6 billion, a year-on-year decline of 10.5%; sales area of 92.24 million square meters, a year-on-year increase of 18.6%. Recurring income in 2025 was approximately 51.15 billion, a year-on-year increase of 6.5%, with operational real estate rental income of approximately 32.94 billion, a year-on-year increase of 12.8%. Risk warning: Continued pressure in the real estate market; new operational real estate projects falling short of expectations; slow recovery of offline consumption.