Citibank: Raises target price of CHINA JINMAO (00817) to 1.9 Hong Kong dollars, rates it as "BUY" and is considered a top pick stock.

Citigroup released a research report stating that CHINA JINMAO (00817) has entered a growth cycle from 2025 to 2027. It is expected that the contract sales will increase by 16% and 7% in 2025 and 2026 respectively, rising to the eighth position in the industry rankings. Furthermore, the company is accelerating land acquisitions, with 66% located in Beijing and Shanghai, and its financial position is strong. It has added 43 new projects since 2024, with a net profit margin of over 10%, and has activated 15 land plots through land swaps or change of use. Citigroup maintains a "buy" rating on the stock, considering it as a preferred stock, and has raised its target price from HK$1.8 to HK$1.9. The company aims to resolve 80% of its inventory issues by 2027. The management has optimized and streamlined the structure, centralized procurement to improve efficiency, and reduced sales and administrative expenses. The financing cost for new projects has decreased to 2.75%. Citigroup has adjusted its profit forecast for the company, taking into account the support from the state-owned parent company and the valuation being only equivalent to a forecasted P/B ratio of 0.3 times, with a 65% discount to NAV and a forecasted P/E ratio of 11 times for this year.