China Resources Land's 2022 Results in Line, Affirms 2023 Growth, Fair Value Estimate Unchanged

China Resources Land’s, or CR Land’s, 2022 performance was in line with our expectation and we keep our fair value estimate at HKD 43. Our earnings forecast is little changed. We expect generally favorable market reaction to CR Land’s affirmation for growth in sales and profit for 2023. CR Land's management acknowledges the rising segregation in China’s real estate industry among financially stronger property developers that can afford to acquire quality land bank and projects versus others. We think this will lead to a better earnings growth outlook for CR Land and peer China Overseas Land & Investment, especially given both companies’ focus on Tier 1 and better located Tier 2 city projects. CR Land remains one of our preferred China real estate companies. At our fair value, CR Land trades at 1.0 times price/book, which is in line with its historical range.