Goldman Sachs initially gave China Merchants Land (0978.HK) a purchase rating, with a target price of HK$2.4; indicating that it is supported by its parent company, China Merchants Real Estate (000024.SZ), has stable financial strength, and will have an advantage in obtaining low-cost capital and cost control in the future, which can drive rapid expansion of its business scale and benefit stock prices.

The bank expects the compound annual growth rate of China Merchants Land's pre-sales in fiscal year 13-15 to reach 34%, and is expected to remain in net cash by the end of 2014. China Merchants Land, previously known as Dongli Industrial, was listed backstage by China Merchants Real Estate in April this year.