（經濟通 (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)