CGB International Research Report pointed out that the management of Shixin (00014.HK) highlighted the achievements of the company's transformation at the mid-term performance release conference and indicated that this year is the company's harvest period.

CGB International stated that the growth drivers that Shixin will soon encounter include more phase openings of its subsidiary 'Li Yuan' within the next 12 months; further improvement in the rental rate of the Shanghai office; the opening of the 'Li Yuan' retail space in Shanghai; the completion of the Jialulianshan Road project and the comprehensive connection of the Li Yuan area in 2026. The bank also believes that the above developments should be sufficient for Shixin to overcome any weaknesses in its Hong Kong office business.

In addition, considering Shixin's better rental income performance, CGB International expects to raise its profit forecast for the fiscal years 2024 to 2026 by 4.7% to 14.9%. It also believes that with its exquisite customer portfolio and optimized store layout, Shixin will become a popular destination for tourists and Hong Kong residents to visit repeatedly.

Based on the above factors, CGB International has raised the target price for Shixin from 10 yuan to 13 yuan and upgraded the rating from 'Neutral' to 'Outperform the Market'. It also stated that the company's shares are currently quite attractive.