Yuexiu Property stock reports sharp first-half profit decline

Published on 10/07/2026 at 00:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Yuexiu Property stock follows first-half revenue of RMB 36.65 billion, down 23.0 percent year over year. DBS sets a HKD 5.58 target after the earnings update.

Yuexiu Property, HK0000745908, Illustration mit AI erstellt.

Yuexiu Property (ISIN HK0000745908) reported RMB 36.65 billion in first-half 2026 revenue, down 23.0 percent year over year. The Hong Kong-listed developer's profit attributable to shareholders fell 93.6 percent to RMB 90 million, according to Quartr in its August 28, 2026 summary of the interim results. The figures put margin pressure ahead of sales momentum.

Profit drops as margins narrow

Gross profit margin declined to 6.2 percent in the first half, while gross profit fell 55.2 percent to RMB 2.27 billion. The reported result was also shaped by property revenue recognition and lower contributions from associates and joint ventures, according to Futu on September 23, 2026.

Operating indicators offer a counterweight. Contracted sales reached RMB 50.51 billion in the first half, down 17.9 percent year over year, while sales area increased 16.2 percent to 1.699 million square meters. The average selling price fell 29.5 percent to RMB 29,700 per square meter, showing that higher volumes did not offset pricing pressure.

August sales show selective recovery

Yuexiu Property recorded contracted sales of RMB 5.599 billion in August 2026, up 1.7 percent year over year. Cumulative sales from January through August reached RMB 61.207 billion, an increase of 12.4 percent, according to Futu on September 30, 2026.

The sales mix remains concentrated in core cities, with 84.5 percent of first-half contracted sales coming from six core cities. Yuexiu also held RMB 132.44 billion in contracted but unrecognized sales at the end of June, up 0.3 percent from the start of the year, providing a measurable revenue buffer.

DBS keeps a higher target

DBS maintained its Buy rating and a HKD 5.58 price target in a report published September 30, 2026, according to Markets Insider. The target lies 68.6 percent above the HKD 3.31 share price, making the gap a direct test of whether sales growth can translate into recovered margins.

Stock stays below yearly high

Yuexiu Property stock was last at HKD 3.31 on the Hong Kong Stock Exchange on October 6, 2026 at 4:08 p.m. HKT, up 0.61 percent from the prior close. Its 52-week range is HKD 2.94 to HKD 5.15, so the share price remains 35.7 percent below the yearly high.