C&D International (1908 HK): Buy: Replenishing landbank at full throttle

研报英文原文证据摘录

C&D International (1908 HK): Buy: Replenishing landbank at full throttle

ensus? The market has largely recognised

C&D’s strength in luxury product execution and its young landbank. The core debate 16.00

is the pace of its earnings recovery. Given the overhang from its vintage landbank, 11.00

we do not expect the booked gross margin to rebound sharply in the near term. However, 07/25 12/25 06/26

Target price: 19.90 High: 18.90 Low: 12.61 Current: 13.50

earnings upside could come from impairment normalisation, contingent on home price

stabilisation. We model RMB1.5bn of impairment losses in 2026e (2025: RMB3.6bn), Source: LSEG IBES, HSBC estimates

underpinning 23% earnings growth, well above consensus of flat y-o-y growth. In our

Stephen Wang*, CFA

view, C&D’s limited exposure to a legacy landbank, prudent impairment provision and Analyst, Asia Real Estate

stronger pricing power support a more visible earnings recovery in 2026e. The Hongkong and Shanghai Banking Corporation Limited

stephen.wang@hsbc.com.hk

+852 2284 1675

Standing out on interest alignment: On 24 June, the parent company bought 3.5m

shares at an average price of HKD12.85, lifting its shareholding to 56.06% (from MichelleHead of AsiaKwok*Real Estate and HK Equity Research

55.9%). This adds incremental conviction on top of the existing incentive scheme The Hongkong and Shanghai Banking Corporation Limited

michellekwok@hsbc.com.hk

(4.7% of total shares as of 2025), even if a new scheme is unlikely in the near term +852 2996 6918

(Catch-up in play with more upside potential, 12 May 2026). Oliver Yu*

Analyst, Asia Real Estate

Maintain Buy with an unchanged target price of HKD19.90, based on an The Hongkong and Shanghai Banking Corporation Limited