Gelonghui, January 8 | Daiwa released a report stating that CNOOC Properties' stock price fell by about 30% since the acquisition of the communications engineering consulting business. The company announced the termination of the acquisition last week. The bank sees the present as a good buying opportunity, based on attractive valuations and continued steady growth prospects. The bank believes that the company's valuation has fallen to an attractive level. The price-earnings ratio predicted in 2024 is only 9.5 times the historical low, and 12 times lower than that of the state-owned enterprise peers in 2024. The bank also sees the company as a small number of investable property management stocks, supported by its state-owned enterprise background, Chinese and overseas support, and third-party business expansion, including non-residential properties. The bank also expects the company's compound annual profit growth rate from 2022 to 2025 to outperform its peers by 28%. Daiwa reiterated its “buy” rating for CNOOC Properties. The target price was lowered from HK$11.8 to HK$9.6, reflecting a more challenging business environment and reduced market confidence in management. At the same time, it cut the company's earnings forecast per share by 2% to 6% for this year and next, reflecting a lower profit margin assumption.