Gelonghui, November 22 | CCB International published a report stating that Poly Real Estate is a Hong Kong-listed real estate subsidiary of China Poly Group and Poly Development, focusing on about 30 first-tier cities in mainland China and overseas markets. By the end of June, the total land storage area reached 18.4 million square feet, of which 26% were located in the Yangtze River Delta region and 22% in the Greater Bay Area. The bank expects its net saleable resources to be about 275 billion yuan, which is enough to cover three to four years of contract sales. Furthermore, based on the increase in contract sales of Poly Real Estate, the bank expects the company's profit growth forecast for the 2022-2025 fiscal year to be about 7%. It believes that the company's gross margin of around 25% still has room for further normalization, although tax cuts will slightly offset the relevant impact. The company's net debt ratio has improved markedly, from 115.9% in 2022 to 97.3% in the first half of this year. It is believed that with the strengthening of its share capital base, it will further improve to about 80% in 2025. The bank believes that after Poly Real Estate's new management team took office in 2021, the company's strategy is more consistent. As for the downturn in the market since 2021, combined with market consolidation since 2023, Poly Real Estate has become affordable. The bank first gave it an “outperform the market” rating, with a target price of HK$2.5.