Huaqi gave a buy rating to China Merchants Land (00978.HK), and the target price was lowered from 1.78 yuan to 1.68 yuan.

The Citigroup report points out that as the parent company of China Merchants Land completed its asset restructuring at the end of last year, it is believed that China Merchants Land will make more strategic adjustments, including the injection of assets into the parent enterprise, so as to diversify its business. The plan is expected to be implemented in or before the next quarter and is believed to be a short-term catalyst. After the fall in the share price of China Merchants Land, its market capitalization is only $713 million, which is believed to be attractive at present.

The bank said that excluding the potential support of the parent company, the group's sales and profit momentum is expected to improve this year, as salable resources reach 26 billion yuan, an annual increase of 37%, and unrecognized sales of more than 10 billion yuan. Gross profit margin is expected to improve to 27% this fiscal year from 24% in fiscal year 2015.