The Zhitong Finance App learned that Bank of China International published a report, raised the net asset value forecast of Xuhui Holding Group (00884) from $9.9 to $10.72, and raised the target price from HK$6.96 to HK$7.5, maintaining the “buy” rating.

Bank International wrote in the report that after learning about the company's recent business situation and prospects from Xuhui's management, it believes it is expected to achieve its 2019 sales target. In the first 11 months of 2019, Xuhui's total sales were 177.8 billion yuan, accounting for 93.6% of the annual sales target. Bank International believes that Xuhui's annual sales will reach 200 billion yuan, exceeding the target by about 5%.

Furthermore, Bank of China International learned that in the first 10 months of this year, Xuhui spent 61.1 billion yuan to purchase land storage, and purchased about 12.42 million square meters of new land storage, which should account for 8.83 million square meters of construction area. The average equity share reached 71%, which is higher than about 50% of its current land reserves. Xuhui expects its gross margin to remain stable due to lower land costs.