CLSA Raises Yuexiu Property Target Price to HK$5.5, Keeps "Outperform" Rating

Stock News
May 11

CLSA has released a research report, raising the target price for Yuexiu Property (00123) by 7.8% from HK$5.1 to HK$5.5, while maintaining an "Outperform" rating. The firm believes Yuexiu is well-positioned to capture growth opportunities arising from the recovery of first-tier city markets. The injection of funds into Guangzhou's "Racecourse Phase 1" project, expected by early 2027, is also seen as a potential catalyst for its development. CLSA noted that Yuexiu's ongoing efforts to optimize its asset portfolio and replenish land reserves in first-tier cities are expected to support its future growth, particularly after market conditions stabilize. By divesting non-core, low-return, or early-stage assets to generate cash, the company can maintain balance sheet flexibility, supporting its continued strategic upgrade of land reserves. By the end of 2025, half of the company's land bank is projected to be located in first-tier cities, a proportion that ranks among the highest in the industry.

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