The Zhitong Finance App learned that CICC released a research report stating that it will keep China Resources Vientiane Life's (01209) profit forecast unchanged and maintain the industry rating and target price of HK$48, corresponding to 21 times the 2026 core P/E and 23% upward space. The company's stock traded 17.4 times 2026 core P/E and 5.7% 2026 expected dividend yield.
CICC's main views are as follows:
1H26 results are in line with this forecast
The company announced 1H26 results: revenue of 9.22 billion yuan, up 8% year on year; core net profit of 2.23 billion yuan, up 11% year on year, in line with market expectations. The company announced an interim dividend of 0.98 yuan per share. The dividend ratio corresponding to the core net profit caliber is 100% (of which 40% is a special dividend), and the interim dividend corresponds to the current dividend yield of 2.8%.
Shopping centers maintain high quality operating efficiency, and market share continues to increase
Retail sales of 1H26 in the managed shopping center increased 21.7% year on year, with the same store growth rate of 10.2% (continuing to significantly outperform the net zero total growth rate). Among them, the growth rate of the same store in the luxury shopping center was 11.0%, which is slightly better than the overall growth rate. The gross margin of the 1H26 shopping center sector remained the same as the same period last year. The net operating margin on the owner-side increased 0.7 percentage points year-on-year to 68.9%, driving the net operating profit on the owner-side to increase 17% year over year. In the first half of the year, the company opened 3 new shopping malls, with a total number of openings reaching 138, of which 116 projects ranked in the top three in the local market; 12 new third-party projects were expanded during the period, and 80 reserve projects reached 80 by the end of the first half of the year.
Property channels are still resilient in the face of headwinds, and focus on repayment and cash flow management
In the first half of 2026, the company's property channel revenue increased 3% year on year, and gross profit was basically flat year on year. Overall development was still resilient against the backdrop of macro and industry pressure; the current collection rate increased 0.3 ppt to 74.7% year on year, while the settlement rate declined year on year. The company continues to anchor “profit with cash flow”. Effective net operating cash flow in the first half of the year covered more than 70% of core net profit, an increase of 1.5ppt over the same period last year. After deducting dividends that have not been announced to be distributed, it has 15.19 billion yuan in generalized cash.
It is expected that business goals for the whole year will advance steadily, and the opening will accelerate in 2027
The company's overall operating quality rose sharply in the first half of the year, and both the profit side and dividend dimensions achieved the operating goals at the beginning of the year (2026 full year core net profit and double digit dividend per share growth); looking ahead to the second half of the year, the bank expects to continue to advance steadily towards the full year as new commercial management projects continue to be launched (12 new businesses are expected to open in 2026, 16 projects in 2027), rapid growth in the ecosystem business, and continued pressure drop on the cost side. The bank expects that as the company's strategy focuses on cash flow management, operating cash flow is expected to remain healthy throughout the year, providing a solid foundation for the annual dividend payment target.
Risk warning: The overall consumption environment or property management business environment is under pressure beyond expectations.