JPMorgan released a research report stating that CHINA RES LAND (01109) placed approximately 2.2% of its shares in CR MIXC LIFESTYLE (01209) at a discount of around 9.6%. The bank ruled out liquidity pressure as the primary reason, as the proceeds of about HK$2.1 billion from the placement are relatively small and have minimal impact on the group's net debt ratio.

The bank believes the placement aims to enhance the liquidity of CR MIXC LIFESTYLE shares, as the issue of insufficient liquidity was previously discussed during the group's investor meetings. JPMorgan maintains a target price of HK$35 for CHINA RES LAND and HK$44.5 for CR MIXC LIFESTYLE, both with an "Overweight" rating.

Regarding CHINA RES LAND's earnings, the bank initially projected a 5% year-on-year decline in core net profit for 2025, factoring in an expected disposal gain of RMB 2–3 billion from the sale of Kunshan MixC. However, if the sale is delayed to next year, the group's 2025 profit could drop by 10–15% year-on-year. Notably, the HK$2.1 billion proceeds from this placement are similar in scale to the potential disposal gains, which may mitigate downside risks to dividends.

That said, CHINA RES LAND's dividend income from CR MIXC LIFESTYLE is expected to decrease by approximately RMB 97 million next year.