China Jinmao Holdings Group Ltd
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$2.30 | Skvpm | Ngxwsrh |
China Jinmao's Earnings Set To Benefit From Robust Investment Property Revenue Growth
Business Strategy and Outlook
China Jinmao mainly engages in development of high-end properties in wealthy cities of China, with focus shifting to the city operation model in recent years. Through this model, Jinmao capitalizes on the strong ties with local government and taps into sizable primary and secondary land development projects. While primary land development warrants better margins, given lower land cost via a nonauction channel, we think it’s susceptible to large fluctuations in brownfield land provision by the government. That said, we expect China Jinmao to continue to source low-cost landbank for secondary land development through city operation. Despite a pronounced sales dip in 2022 amid weak homebuyer sentiment, China Jinmao’s premium projects should maintain traction among housing upgraders, boding well for a moderate sales recovery through 2027, in our view.