China Overseas Land & Investment: A Real Estate Giant
China Overseas Land & Investment is a prominent name in the real estate sector, providing comprehensive services from development to management and investment in commercial properties worldwide. Despite facing fluctuating market conditions, the company has maintained a resilient stance.
Market Overview and Shareholding: The company’s share price stands at HK\$29.20, with a target price set at HK\$32.15, indicating a potential upside of 10.1%. Major shareholders include China Resources Land Ltd, which holds 59.51% of the shares, followed by Vanguard Group Inc/The and Blackrock Inc. with 1.76% and 1.56% respectively.
Financial Performance: The FY24 NAV per share is Rmb 7.70, with a net debt per share of Rmb 7.12. The company has demonstrated a commendable price performance with a 13% growth over six months and a 10.3% year-to-date increase.
Recommendation: The report maintains a “Buy” recommendation for China Overseas Land & Investment, emphasizing the company’s strong global presence and strategic growth potential.
CR Mixc Lifestyle: A Beacon of Innovative Management
CR Mixc Lifestyle, a subsidiary of China Resources, has showcased exceptional management capabilities through its innovative projects and strategic expansions. The recent reverse roadshow in Shenzhen highlighted the company’s operational success and future prospects.
Key Site Visits: The roadshow included visits to the Shenzhen Talent Park and Shenzhen Universiade Sports Centre. These projects underline CR Mixc’s proficiency in managing large-scale developments, with the talent park covering a GFA of 770,000 sqm, and the sports centre generating significant foot traffic through cultural and sports events.
Financial Adjustments and Market Positioning: The company has revised its earnings forecasts for 2024/25/26 by 1.2%/3.8%/6.4% respectively, due to rising macro uncertainties. The target price was adjusted to HK\$32.15, reflecting a 16.3% cut from the previous estimate.
Malls Performance: CR Mixc’s malls have shown an improvement in same-store retail sales growth (SSSG) in the fourth quarter of 2024, recovering from a weaker third quarter. The October 2024 SSSG noted a 7.2% year-on-year increase, surpassing the national retail growth rate.
Third-Party Expansion: The company has expanded its non-commercial third-party projects by Rmb2.2 billion in 11M24, with an annualized order value of Rmb0.7-0.8 billion. They have also secured 12 third-party commercial projects in 11M24, albeit with a cautious approach towards mergers and acquisitions.
Financial Metrics: The report outlines key financial metrics, projecting net profits of Rmb 3,603 million, Rmb 3,962 million, and Rmb 4,365 million for 2024F, 2025F, and 2026F respectively. The company maintains a strong EBITDA margin, with a projected growth trend in turnover and net profits.
Recommendation: UOB Kay Hian recommends maintaining a “Buy” stance on CR Mixc Lifestyle, with a strategic focus on improving its membership system and pursuing high-quality growth.
