BofAML upgrades CR Land (01109) to "buy"
2014-09-26,经济通 (英文)

(经济通 (英文) 2014/09/23

BofA Merrill Lynch trimmed its target price for

China Resources Land (CRL)(01109) to HK$19.7, but upgraded the stock to "buy" from

"neutral" after a recent 13% pullback.

The research house said CRL's contract sales lag behind peers, but BofAML sees potential

changes ahead. The upcoming asset injection will have positive impact on CRL's landbank

quality and pipeline for the next few years. Also, CRL will have incremental saleable

resources of RMB30-40bn in September-December (30% of the amount for the full-year).

Management appears determined to achieve better sales by offering more discounts. The

research house believe that CRL's rental portfolio still offers stable growth, and that

management's focus to build up the portfolio will pay off in the long run as it will

reduce the risk profile. (KL)