The Zhitong Finance App learned that Citi released a research report stating that while maintaining Greentown China's (03900) “buy” rating, the target price was lowered from HK$11.8 to HK$10.8. Although inventory removal may still affect Greentown China's gross profit margin in 2026, estimated at 10% to 11%, the bank believes that more clarity in profit accounting can help investors justify the room for rising stock prices. The bank believes that investors will need time to establish confidence in the new chairman and CEO of Greentown China after the change of board of directors in March 2025. CCCC has strengthened controls and provided support to Greentown China, including capital consolidation and resource integration.

Fundamentally, Citi points out that Greentown China is optimizing operations, selling in the top six in the industry in the first half of 2026, and plans to invest more resources in the second half of the year, such as 126 billion yuan in saleable resources to achieve the annual sales target of 130 billion yuan; land acquisition ranks in the top 4, which has completed 46% of the 100 billion yuan resource target; reduced financing costs to a new low of 3.2%, and sales and administrative expenses fell 13% year on year to cushion net profit margins.

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