Changes in Hong Kong stocks | Xincheng Development (01030) fell more than 4%. Profit attributable to shareholders in the first half of the year decreased by 12.07% year-on-year, and Daimo is expected to resume dividends during the year

The Zhitong Finance App learned that Xincheng Development (01030) fell by more than 4%. As of press release, it was down 3.86% to HK$1.37, with a turnover of HK$29.0871 million.

According to the news, Xincheng Development previously disclosed its 2026 interim results. The group achieved a turnover of 17.686 billion yuan during the period, a year-on-year decrease of 20.24%; the profit attributable to the company's equity holders was 608 million yuan, a decrease of 12.07% over the previous year. During the period, the Group's property development business turnover was approximately RMB 10.564 billion. The total construction area of the delivered property is 1,859,600 square meters. The average sales price of the property delivered and confirmed for sale is approximately RMB 5,681 per square meter.

Damo released a research report saying that Xincheng Development's current valuation is attractive, which is equivalent to about 4 times the predicted recurring profit in 2027 and 0.2 times the historical market account ratio. The bank expects rental income to record a steady compound annual increase of 3% to 4% with steady support from shopping mall operations, and benefit from further market share expansion in low-tier cities and increased support for consumption by the central government over the next five years. Furthermore, the potential spin-off of public and private real estate investment trusts in the next one to two years is expected to unlock the value of its shopping mall portfolio, further reduce debt and increase book value. As operations return to normal, the bank believes Xincheng Development is expected to resume dividends this year.