The Zhitong Finance App learned that Bank of China International released a research report stating that it maintains the “buy” rating of Yuexiu Real Estate (00123), and given that the company has stronger contract sales, it is expected that Yuexiu's financial situation will remain steady, with a net debt ratio of less than 70%. This will continue to support Yuexiu's active land acquisition, reducing the target price by 14.3% to HK$9.85.

The report points out that even with unfavorable market conditions in 2023, Yuexiu Real Estate will still exceed the contract sales target set at the beginning of the year. Taking into account the company's stronger contract sales growth, the bank raised last year's revenue forecast by 2.4%. The gross margin forecast for last year was reduced by 1.8 percentage points from 17.8% to 15.9%. As a result, the bank lowered last year's core net profit forecast by 14.4% to RMB 3.67 billion, which is equivalent to a 13.5% year-on-year decline.