C&D International (1908 HK) Buy: Catch-up in play with more upside potential

研报英文原文证据摘录

C&D International (1908 HK) Buy: Catch-up in play with more upside potential

stage participation (e.g., 16.00

placements). With onshore investors showing stronger conviction in a housing market 11.00

05/25 11/25 05/26

turnaround, southbound holdings have been rising and replacing select foreign

Target price: 19.90 High: 18.90 Low: 12.61 Current: 17.55

investors. Meanwhile, client feedback suggests large foreign long-only (LO) investors

Source: LSEG IBES, HSBC estimates

have yet to build meaningful positions in C&D. Combined with undemanding

valuation (2026e PE: 7.7x and dividend yield 6.5%), this should leave room for further

Stephen Wang*, CFA

re-rating. Improving liquidity should also help attract LO interest - 3M ADTV has Analyst, Asia Real Estate

The Hongkong and Shanghai Banking Corporation Limited

reached USD12m, broadly on par with Greentown and c65% of Longfor. stephen.wang@hsbc.com.hk

+852 2284 1675

Share incentive scheme: Investors are asking whether a new batch of share

Michelle Kwok*

incentives will be rolled out in 2026 as a signal of continued alignment between Head of Asia Real Estate and HK Equity Research

management and shareholders. In practice, however, prevailing salary cap The Hongkong and Shanghai Banking Corporation Limited

michellekwok@hsbc.com.hk

constraints for senior management at SOEs could make additional incentives harder +852 2996 6918

to implement, as capital gains are typically counted as part of the total remuneration Oliver Yu*

package. That said, we think the existing scheme size (4.7% of shares under the Analyst, Asia Real Estate

scheme as of 2025) already provides meaningful alignment, particularly when paired oliver.y.o.x.yu@hsbc.com.hk

with the company’s focus on dividend payout. +852 2288 2050