CICC slashed its 2026 and 2027 earnings forecasts for Greentown China (03900.HK) by about 40 percent, prompting an 8 percent cut to the developer's target price to HKD14.
The brokerage "maintained an Outperform rating" on the property developer, according to its latest research report, despite the significant forecast revisions.
CICC cut its earnings forecasts for 2026 and 2027 by 39 percent and 41 percent to RMB200 million and RMB960 million, respectively. The adjustment follows Greentown China's 2025 results, which saw net profit attributable to shareholders fall to RMB70 million, a sharp drop from RMB1.6 billion in 2024.
The downgrade reflects mounting pressure on Chinese property developers as a smaller pipeline of sellable resources weighs on future earnings. The move by CICC echoes similar sentiment from HSBC Research, which recently lowered its own price target on the stock to HKD9.5.
The sharp downward revision from a major brokerage like CICC highlights persistent concerns over the profitability and project pipeline of Chinese real estate firms. While CICC maintains a positive rating, the drastic cut to forecasts suggests a more challenging path ahead for Greentown China's stock. Investors will be closely watching the company's ability to replenish its land bank and navigate the ongoing sector-wide headwinds.
This article is for informational purposes only and does not constitute investment advice.
