UBS Selects CHINA RES MIXC/ GREENTOWN SER as Preferred Choices, Anticipates Slower Earnings Growth for Chinese Property Managers

Written by Emily J. Thompson, Senior Investment Analyst

Source: aastocks

Updated: Jan 26 2026

0mins

01209-1.77%

02602-1.17%

02669-0.23%

Should l Buy 01209?

Source: aastocks

Earnings Growth Expectations: Chinese property managers are projected to see a 10% year-over-year earnings growth in 2025, which is below the market expectation of 12% and slower than previous years' growth rates.
Factors Affecting Performance: UBS attributes the slower growth to declines in cash collection rates, value-added service revenue, and profit margins among property managers.
Top Performers: GREENTOWN SER is expected to lead in performance among major property managers, followed by CHINA RES MIXC, which are also UBS's top picks.
Market Sentiment: JPMorgan anticipates continued weakness in Chinese property developers in 2025, favoring investments in CHINA RES LAND and CHINA JINMAO.

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01209

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Analyst Views on 01209

Wall Street analysts forecast 01209 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01209 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Analyst Rating

0 Buy

0 Hold

0 Sell

Current: 47.400

Low

Averages

High

Current: 47.400

Low

Averages

High

Morgan Stanley

upgrade

2026-01-20

Reason

Morgan Stanley

Price Target

AI Analysis

2026-01-20

upgrade

Reason

The analyst rating from Morgan Stanley is influenced by several factors outlined in the report. Despite the challenges faced by Chinese property managers, such as weakening collections and rising vacancy fees, the firm expects modest earnings growth in the industry for 2025-27 (3%/5%/7% YoY) and revenue growth of about 5%. However, profit margins are anticipated to be under pressure due to these weakening collections. Morgan Stanley recommends focusing on high-quality companies with a solid asset base, which is reflected in their Overweight ratings for CHINA RES MIXC and GREENTOWN SER, despite a slight reduction in the target price for the latter. They also consider CG SERVICES as a tactical choice, rating it as Equalweight while increasing its target price. Overall, the ratings are based on the expectation that property management services will be the main growth driver in the industry, even as value-added services remain sluggish.

UOB Kay Hian

Hold

maintain

$43

2026-01-16

Reason

UOB Kay Hian

Price Target

$43

2026-01-16

maintain

Hold

Reason

UOB Kay Hian has maintained a Hold rating on CHINA RES MIXC due to a mixed outlook for its revenue streams. While the overall core net profit and revenue are expected to grow by 12.2% and 6.8% year-over-year, respectively, the property management business is projected to see only a modest revenue increase of 1.4%, primarily due to a significant decline in value-added services revenue. However, the commercial operation business is expected to perform well, with a projected revenue increase of 16.8% driven by higher shopping mall revenue. The target price was raised from HKD 41.1 to HKD 43, reflecting a cautious optimism about the company's performance despite challenges in certain segments.

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About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

an image of <Daily Summary> HSI Ends at 26,847, Gaining 12 Points; HSTI Finishes at 5,366, Dropping 100 Points; TENCENT Falls More Than 3%; XINYI GLASS, TECHTRONIC IND, CHINA RES MIXC, WHARF REIC, MTR CORPORATION Reach New Peaks; Market Turnover Increases

<Daily Summary> HSI Ends at 26,847, Gaining 12 Points; HSTI Finishes at 5,366, Dropping 100 Points; TENCENT Falls More Than 3%; XINYI GLASS, TECHTRONIC IND, CHINA RES MIXC, WHARF REIC, MTR CORPORATION Reach New Peaks; Market Turnover Increases

1 day agoaastocks

Market Performance: The Hang Seng Index (HSI) rose slightly by 12 points to close at 26,847, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) fell by 100 points and 4 points, respectively, with a total market turnover of $285.43 billion.
Active Heavyweights: Major stocks like Tencent, Xiaomi, and Meituan experienced declines, with Tencent dropping 4% to close at $558, while other heavyweights also saw significant short selling activity.
Notable Movers: Trip.com saw a significant drop of 6.1%, while Xinyi Glass and China Shenhua recorded gains of 5.9% and 5.7%, respectively, with several stocks hitting new highs.
Short Selling Trends: Various stocks experienced notable short selling, with Techtronic Industries and China Resources Mixc among those hitting new highs, while others like Kingdee International and Meitu faced substantial declines.

<Research> JPM: Relaxation of 'Three Red Lines' for Chinese Developers is Not a Novel Development

Jan 30 2026aastocks

JP Morgan Report on Chinese Property Developers: JP Morgan's report indicated a 6% rise in stock prices of Chinese property developers, attributed to market speculation and the easing of monthly reporting requirements on the "Three Red Lines" by Chinese authorities.
Market Reaction Analysis: The broker suggested that the significant price increase may not solely be due to the news, as the reporting requirement has not been enforced for years, leaving room for other speculative market behaviors.
Future Market Outlook: JP Morgan believes that Chinese property developers may continue to outperform the market leading up to key political events in March and April, favoring stocks like CHINA RES LAND, CHINA RES MIXC, and CHINA JINMAO.
Best Investment Recommendation: Among the developers, LONGFOR GROUP is highlighted as offering the best risk/reward potential in a policy-driven market rally, despite its current short selling ratios.

an image of JPMorgan Favoring China Resources Land, China Resources Mixc, and China Jinmao; Chinese Property Sector Expected to Continue Outperforming Until April

JPMorgan Favoring China Resources Land, China Resources Mixc, and China Jinmao; Chinese Property Sector Expected to Continue Outperforming Until April

Jan 29 2026aastocks

Market Reaction: Chinese property developer stocks rose, speculated to be linked to the decision by authorities to stop requiring monthly "Three Red Lines" compliance reports, although JPMorgan noted this news was not new.
JPMorgan's Analysis: The firm indicated that the stock rise might be influenced by other market rumors, as no new relevant information was available at the time of their report.
Future Outlook: JPMorgan believes the performance of the Chinese property sector may continue to exceed market expectations until the Two Sessions in March and the CCP Politburo meeting in April.
Investment Recommendations: The report highlighted optimism for specific companies like CHINA RES LAND and LONGFOR GROUP, with the latter being noted for the best risk-reward potential in a policy-driven market.