Goldman Sachs refers to the annual net profit of China Merchants Land (0978.HK) rose 7% to RMB 459 million in fiscal year 13, which is lower than market expectations, mainly due to the impact of project gross profit margin. It is quoted that its management said that the pre-sale target for 2014 is RMB 10 billion, an annual increase of 36%, while its debt ratio to the end of 2013 is only 4%, which has the financial strength to increase land reserves. In response to its property progress and gross margin expectations, it reduced its profit forecast for fiscal year 15 by 4% and 1%, and lowered its target price by 5% to HK $2.27, but reiterated its buy rating. China Merchants property (000024.SZ) holds about 74 per cent of China Merchants Land.