0956 GMT - China's property sector is likely to see more signs of margin stabilization as soon as next year, alongside increasing contribution from higher-margin new projects, DBS analysts write in a note. Most property developers generally reported weak 1H earnings, but it was largely within market expectations, they say. The core profits for companies covered by DBS fell 23% on-year due to margin compression for the first half, they add. Developers have generally maintained their presales, project launch and land acquisition targets released at the start of the year, they say. The margin pressure could gradually ease as soon as next year upon gradual recognition of newly acquired projects with higher margins, they add. Policy speculation appears less relevant to the investment thesis for the sector. DBS's top picks are Yuexiu and China Overseas Grand Oceans Group. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

September 08, 2025 05:56 ET (09:56 GMT)

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