Key Takeaways:
C&D International Group (01908.HK) extended its rally to a seventh day, rising 3.25% after HSBC Research reiterated its “Buy” rating, seeing significant catch-up potential for the property developer.
"Although the company’s share price has risen only 12% year to date, lagging the industry’s average gain of 29%... its land replenishment pace in May and June may accelerate," HSBC Research said in a note.
HSBC maintained its HKD 19.9 price target on the stock, which implies a 10.4% upside from its closing price of HKD 18.12 on Tuesday. The stock reached an intra-day high of HKD 18.3, a 4.27% increase, with turnover of HKD 279 million.
The stock has gained for seven consecutive sessions. HSBC’s maintained price target suggests further re-rating is possible, driven by strong project sales and an evolving shareholder structure with increased southbound capital.
HSBC cited several factors supporting its bullish view. The bank expects the strong launch of the "Qihu Yunzhuang" project in Hangzhou and a rebound in secondary home transactions in Xiamen to provide further support to the share price. The report also highlighted the company's undemanding valuation, with a forecast 2026 price-to-earnings ratio of 7.7x and a dividend yield of 6.5%.
The positive sentiment is shared by other analysts. A recent Bank of America Securities report noted the Chinese property market is in an "early stage of recovery," prompting it to raise its price target for C&D International to HKD 20 from HKD 17.2, also with a "Buy" rating.
The continued positive coverage from analysts suggests growing confidence in C&D International's strategy. Investors will be watching to see if the accelerated land replenishment in the coming months translates into sustained sales momentum.
This article is for informational purposes only and does not constitute investment advice.
