Bank of Communications International (1.130.01) released a report that Jianye Real Estate (3.98, 0.19, 0.19, 4.56%) (00832) currently has sufficient low-cost land reserves to cope with four years of development, and even if it no longer buys land, the company is expected to become one of the 100 billion housing sales companies next year. It is expected that the company will attract more investors' attention, thus releasing hidden value. At present, the valuation is relatively cheap compared to small-sized inner housing stocks. The first "buy" investment rating, with a target price of HK $6.1.

According to the bank, Jianye Real Estate accounted for more than 10% of the real estate market in Henan Province in the first half of this year. In addition to independent development projects, it also operates a high-profit business segment with light assets, and manages projects for other landlords by exporting its project development capabilities. To earn management and brand fees and profit sharing.

As of the first half of this year, the company has 131 light asset projects, which are expected to generate a total management income of more than 4 billion yuan, with a gross profit margin of more than 80 percent.

The bank said it expected revenue and core profits to grow at a compound annual rate of 52 per cent and 89 per cent respectively from 2019 to 2021, and expected a dividend yield of 20 per cent next year as profits soared and dividends increased.