The Zhitong Finance App learned that China Galaxy Securities released a research report stating that it covered C&D International Group (01908) for the first time and gave it a “recommended” rating. The bank estimates that the company's core net profit for 2026-2028 will be $3.325 billion, $3,528 billion and $3.776 billion, respectively, with corresponding price-earnings ratios of 7.69 times, 7.25 times and 6.77 times, respectively. The bank believes that the company takes real estate development as its core business, while developing the upstream and downstream real estate industry chains, gaining market reputation through differentiated and high-quality products. The development business focuses on core cities, and the industry ranking is rising steadily.
The main views of China Galaxy Securities are as follows:
State-owned enterprises developed as core business
C&D International Group is a holding subsidiary of C&D Real Estate Group Co., Ltd., with real estate development as its core business, and also develops the upstream and downstream real estate industry chains, including commercial operation management services and property management. In the first half of 2026, the company achieved operating income of 17.8 billion yuan and net profit of 830 million yuan to mother.
Development sales are rising steadily
In the first half of 2026, the company's equity sales amount was 48.9 billion yuan, ranking 5th in the industry, with a market share of 1.68%. The company's products emphasize quality and differentiation, and adhere to the layout of high-energy cities. First-tier and second-tier cities accounted for 84.95% of sales in the first half of 2026.
The company created a differentiated competitive advantage through new Chinese products and gained a reputation in the market. In 2025, the company will build a “lighthouse project” to anchor scarce urban locations. Cost investment does not count short-term returns, and focuses on long-term residential value.
Abundant investment and reserve resources
The company maintains a diversified investment strategy. Judging from the pace of investment, the overall sales cycle of the company and the industry is basically the same, with an investment intensity of 0.46 in the first half of 2026. On the basis of prudent investment, the company slightly increased its land acquisition efforts by improving investment accuracy.
The company maintains sufficient land reserves. By the end of the first half of 2026, the company's total land reserves were 10.39 million square meters; based on equity, the share of land reserves in Tier 1 and 2 cities reached 71.92%, with land reserves focused on core cities.
Property management business is stable and steady
The company's property service business is carried out through its subsidiary C&D Property. In 2026, C&D Property ranked 11th in the top 100 comprehensive strength property service enterprises in China. In the first half of 2026, C&D Property achieved a net profit of RMB 2.557 billion and net profit to mother of RMB 240 million.
Investment advice
China Galaxy Securities believes that the company takes real estate development as its core business, while developing the upstream and downstream real estate industry chains, gaining market reputation through differentiated and high-quality products. The development business focuses on core cities, and the industry ranking is rising steadily. Based on the differentiated advantages of the company's development business and high-quality land reserves, the bank predicts that the company's core net profit for 2026-2028 will be $3.325 billion, $3,528 billion and $37.76 billion, respectively, with corresponding price-earnings ratios of 7.69 times, 7.25 times, and 6.77 times, respectively. For the first time, coverage gave it a “recommended” rating.
Risk Alerts
Macroeconomic risk of falling short of expectations; risk of policy promotion and implementation falling short of expectations; risk of large fluctuations in housing prices; risk of falling short of expectations in housing sales and completion; risk of significant depreciation of inventory book value; risk of significant exchange rate fluctuations; risk of property services falling short of expectations.