CLSA believes that China Jinmao has successfully transitioned from losses to profitability over the past two years, with contract sales showing growth. The company is on a recovery path, and its Overweight plan aligns management and shareholder interests, which may lead to further revaluation. The firm expects profit margins to improve as high-cost inventory is digested and anticipates earnings growth supported by quality land reserves. However, due to weak sales in recent years, earnings forecasts for 2026 and 2027 have been lowered. The target price has been increased to HKD1.52, maintaining an 'Outperform' rating.
