The Zhitong Finance App learned that Yuexiu Real Estate (00123) announced on the evening of July 17 that due to the impact of the previous deep industry adjustment cycle, the company estimates that the profit attributable to equity holders in 2026 fell to 50 million yuan to 100 million yuan year on year compared to the same period last year, core net profit fell to 50 million yuan to 100 million yuan year on year, and profit narrowed in stages.
A market source said in an interview that the decline in housing companies' profits is not an isolated case. The recent downturn in the market has led to a decrease in project carry-over profits and the centralized release of depreciation accruals, which is a common phenomenon in the industry. Compared to the current situation where most housing enterprises lose money on a large scale, Yuexiu still maintains profits, proving that the company has a very solid operating base and is more resistant to cycles.
Yuexiu Real Estate has maintained a sound financial structure for a long time. According to the announcement data, in 2025, the company achieved a net operating cash inflow of nearly 14 billion yuan and year-end cash of 46.76 billion yuan. The coverage ratio for short-term debt maturing within one year reached 1.7 times, the capital safety margin was strong, and the investment grade ratings of S&P and Fitch were maintained.
A sound financial base provides solid support for the company to grasp the market window and promote sales and core city layout. According to Kerui data, Yuexiu Real Estate's full-caliber sales reached 50.5 billion yuan in the first half of the year, ranking 8th in the industry. Furthermore, according to the recently released June results announcement, the company's contract sales for the month were 13.492 billion yuan, up 24.9% year on year, and sales momentum continued to be released.
Among them, the performance of the Guangzhou market, which is the main base, was particularly outstanding. According to Kerui data, Yuexiu Real Estate achieved full-caliber sales of over 20 billion yuan in Guangzhou in the first half of the year, an increase of about 31.8% over the previous year, and the high-end luxury, improved, and newly needed product line fully blossomed. Guanyue has accumulated sales of 1,938 billion yuan in the first half of the year; Yuejingtai has sold more than 2.4 billion yuan since entering the market in March, ranking in the city's TOP3 for new housing transactions in the first half of the year; Huanbo and Zhenwen ranked in the top five new housing units and area in the city in the first half of the year.
According to the above analysis by market sources, the Guangzhou property market experienced a structural recovery under policy impetus. First-hand housing prices have been rising sequentially for 4 consecutive months. Yuexiu has accurately grasped the market window, and sales growth is strong.
In addition to Guangzhou's impressive performance, Yuexiu has also achieved good removal in core cities such as Beijing and Hangzhou. The total number of units sold in Hangzhou in the first half of the year was ranked in the city's TOP5. Since opening in March, Chengdu Tianyue Yuncui Phase III has visited more than 10,000 groups, and has repeatedly topped the list of monthly bungalow sales in the main city; Beijing Puyi continues to lead the local high-end luxury housing market.
While the sales side is growing steadily, Yuexiu has repeatedly obtained core high-quality assets in Guangzhou, Shanghai, Chengdu and other places in the first half of the year, continuing to consolidate its core city layout.
With strong sales elimination performance, many brokerage firms continue to track and cover Yuexiu Real Estate and maintain a “buy” rating. CITIC Lyon has published research reports twice. It is optimistic about Yuexiu's sales resilience, and has also included it as the preferred target for domestic housing state-owned enterprises. At the same time, it is expected that the injection of the Guangzhou Pearl River New Town project may be a catalyst for the company's stock price, so the target price was raised to HK$5.5.