HOLD with TP lowered to SGD0.50/sh. While we identified meaningful values (China & SG IP) embedded in the company (see link for our detailed analysis), we see limited room for management or the company to pursue value-unlocking options at the current valuation levels. Meanwhile, its conservative investment strategy since the commencement of the property downcycle allowed it to safeguard its cashflow performance but limited its ability to adjust project launches and benefit from any recovery in market sentiment. Maintain HOLD with TP revised down to SGD0.50/sh, pegged to a 0.17x one-year forward PB, equivalent to the average level since 2024 when the concerns on repayment capability started to fade.

Shrinking operational scale. The company&rsquo s thinning landbank (-15% h/h to 6.4mn sm or c.Rmb80bn in saleable resources) and shrinking gross unbooked sales (-44% h/h to Rmb30.2bn) point to weak development revenue visibility. Meanwhile, development margin (c.18.7% excl. impairment) may continue to fall as Yanlord recognises its presales recorded in the past two years (at c.10%-15% GPM). Further inventory write-down would be a wild card dependent on future ASP trends. We believe Yanlord may continue to be loss-making in FY25-26F.

Continuing to de-risk its balance sheet. Management intends to maintain its defensive strategy and protect cashflow as their top operational priority. While land acquisition is not being ruled out, near-term focus will be on settling public bond obligations and destocking inventory. Yanlord aims to launch a lower c.Rmb25bn of saleable resources for FY25F.