According to the intelligence financial APP, Lyon released a research report stating that it maintains the "outperform the market" rating for Yuexiu Property (00123), but due to the slowdown in sales and continued gross profit pressure, it has lowered the company's profit forecast for the next two years by 35% and 36.6% respectively to reflect the slowdown in sales and erosion of gross profit. The corresponding target price has been reduced from HK$11 to HK$4.2. Although the sales of Yuexiu Property from the beginning of the year to the present have lagged behind its annual target, it still outperforms most of the tracked mainland real estate stocks. The bank believes that the company, because it actively supplements high-quality land reserves more than its counterparts, should be able to sustainably increase its market share in the visible future.

The bank pointed out that the company's sales in the first seven months recorded CNY 60.4 billion, a year-on-year decrease of 34.4%, which is slightly better than the year-on-year decrease of 39.4% of the top 100 real estate companies tracked by China Real Estate Information Corporation (CRIC). The sales in the first seven months of this year account for 41% of the annual target. The bank expects that the company will face challenges in achieving its annual sales target. The average contract sales price for the first seven months of this year is 8.2% lower than last year. In addition, inventory impairment may affect profitability, so it is expected that the performance of the first half of this year and the whole year will moderately decline. The company spent a total of CNY 12.1 billion in the first half of this year to increase land reserves, focusing on first and second-tier cities. The bank believes that this will help the company outperform its industry peers in future sales.