Haitong International: Target price of HK$45 for the first time in the China Resources Vientiane Life (01209) “superior to the market” rating

The Zhitong Finance App learned that Haitong International released a research report saying that it covered China Resources Vientiane Life (01209) for the first time, giving it a “superior to the market” rating. The target price is HK$45, which is equivalent to 19 times the projected price-earnings ratio in 2027.

According to the report, the total retail sales of shopping malls operated by the company reached a compound growth rate of 22% from 2021 to 2025, driving the growth of the company's related operating revenue.

With the recovery of high-end consumption, the share of the company's luxury business format increased, stock project optimization and refined operation, the gross margin of the commercial waterway sector continued to rise, continuing to drive profit growth. Combined with the development strategy of the 15th Five-Year Plan, the compound growth rate of commercial waterway revenue and profit is expected to exceed 10%.

Property Channel's 2026 annualized contract increase is expected to remain at RMB 1 billion, which is the same year over year. The net profit target is rising steadily, providing the company with a stable cash flow and large-scale chassis.

The bank estimates that the company's revenue from 2026 to 2028 will be 19.59 billion yuan, 21.19 billion yuan, and 22.75 billion yuan, respectively, up 9%, 8%, and 7% year-on-year; net profit to mother will be 4.4 billion yuan, 4.86 billion yuan, and 5.32 billion yuan, respectively, and corresponding net interest rates to mother will be 22.5%, 22.9%, and 23.4%, respectively.