CISI FIN issued a research report stating that YUEXIU PROPERTY (00123) is expected to achieve core net profits of RMB 1.248 billion and RMB 1.403 billion in 2025/2026 respectively. Based on the closing price on September 4, 2025, the corresponding P/E ratios for 2025/2026 are 13.9x and 12.4x respectively, maintaining a "Buy" rating. In H1 2025, the company achieved revenue growth of 34.6% year-over-year to RMB 47.57 billion and core net profit of RMB 1.52 billion, with performance meeting expectations. The company declared a dividend of HK$0.166 per share for H1 2025, representing a payout ratio of 40%, remaining stable compared to the same period last year. CISI FIN's main viewpoints are as follows:

Contract Sales Amount Grows Against Market Trend, Maintaining Leading Industry Position In H1 2025, the company's contract sales amount increased 11.0% year-over-year to RMB 61.5 billion, accounting for approximately 51% of the full-year sales target of RMB 120.5 billion, with industry ranking remaining stable at 8th place. The northern region, Greater Bay Area, and eastern China contributed 33.8%, 27.4%, and 27.8% of contract sales respectively. The company's available resources for sale in 2025 reached RMB 235.4 billion. Based on the full-year sales target of RMB 120.5 billion, only a 51% sell-through rate is required. The available resources consist mainly of quality projects in tier-one and tier-two cities, and combined with expectations of loose market policies, there is strong assurance for achieving the full-year sales target.

Land Acquisition Focused on Core Cities In H1 2025, the company acquired 13 new land parcels in Beijing, Shanghai, Guangzhou, Hangzhou, Xi'an, and Foshan, with total gross floor area of 1.48 million square meters and total equity investment of RMB 10.96 billion. Investment in core tier-one and tier-two cities accounted for 92%, with an average premium rate of only 9%, significantly lower than the average for top 10 developers, demonstrating outstanding investment cost-effectiveness. Additionally, as of the end of H1 2025, the company's total land bank reached 20.43 million square meters, with tier-one cities accounting for 45%, tier-two cities 49%, and tier-three and tier-four cities only 6%.

Financing Costs Continue to Optimize The company's financing costs continued to decline. As of the end of 2024, the company's weighted average borrowing rate decreased by 41 basis points year-over-year to 3.16%, at industry-leading levels. The "three red lines" indicators continued to maintain green status, with asset-liability ratio (excluding advance receipts), net debt ratio, and cash-to-short-term debt ratio at 64.6%, 53.2%, and 1.7x respectively. The low-cost financing mainly benefits from the company's quality credit profile. In the first half of 2025, the company received a new S&P "BBB–" investment grade rating (stable outlook), while Fitch upgraded the "BBB–" rating outlook to stable, making it the only property developer in the industry with a rating upgrade, significantly enhancing financing negotiation capabilities.