According to the research report released by UBS, Yue Xiu Property (00123) has a diversified land acquisition pipeline, and its major shareholder intends to increase its shareholding in the company. The report argues that this has not been reflected in its undervalued position relative to peers. UBS predicts that its PE ratio for 2025 will be 0.36 times, one of the lowest among Chinese SOE developers. The target price has been downgraded from HKD 11.7 to HKD 7.2, while the 'buy' rating is maintained.

The bank predicts that under the government's destocking measures, the housing prices of first-tier and second-tier cities will stabilize by mid-2025. It is expected that Yue Xiu Property's gross margin in 2024 will drop to 13%. Due to the sluggish real estate market since the beginning of the year, its profit forecast for 2024-2026 has been downgraded by 34%-59%, as both profit margins and contract sales are expected to be lower.