China Overseas Land 0688

[winston]

not vested

China Overseas Land & Investment Ltd
Ambitious sales growth of 20% for FY23F

COLI’s FY22 results was disappointing with core profit down 28% (below our estimate by 21%) on weaker-than-expected revenue and GPM.

Management guided for an ambitious sales target growth of 20% for FY23F on the company’s high proportion of sellable resources in top-tier cities.

Reiterate Add, with a lower NAV-based TP of HK$24.0.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 2F96F221D9

[winston]

not vested

China Overseas Land & Investment (688 HK) - Growth targets a shift from usual conservative stance

China Overseas Land and Investment (COLI) is a leading state-owned enterprise (SOE) property developer in China with a focus on top-tier cities.

Buttressed by its strong balance sheet and competitive financing cost, the Group is well positioned to benefit from the ongoing industry consolidation and scrutiny by the regulators on leverage in the industry.

COLI guided for its contracted sales to grow 20% in FY23, which is a positive surprise given that management has historically been very conservative.

COLI is also focused on high quality earnings growth, and has set a target to grow its recurring income streams via its commercial operations.

For FY23, it is targeting 30% growth in revenue from its commercial properties.

Given COLI’s healthy balance sheet, we believe it has the financial flexibility to pursue growth via investments in land to replenish its saleable resources. BUY.

Source: OCBC

[winston]

not vested

CHINA OVERSEAS Contracted Sales Rocket 89.7% YoY in Mar; Up 73.2% in 1Q23

CHINA OVERSEAS (00688.HK) announced that, for March 2023, the contracted property sales of the China Overseas Series of Companies amounted to approximately RMB42.987 billion, with a year-on-year increase of 89.7%; and the corresponding gross floor area (GFA) sold was approximately 2.0588 million square meters, with a year-on-year increase of 88.4%.

From January to March 2023, the accumulated contracted property sales of the China Overseas Series of Companies amounted to approximately RMB83.598 billion and the accumulated corresponding GFA sold was approximately 4.2634 million square meters, with year-on-year increase of 73.2% and 70.1% respectively.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

not vested

Homes recovery boosts developer

China Overseas Land & Investment (0688) reported an operating profit of 6.64 billion yuan (HK$7.53 billion) for the first quarter ended in March, up by 34 percent after excluding the gains from acquisitions last year, thanks to the recovery of the property market in mainland China.

The revenue of the state-owned developer increased 10.6 percent to 31.9 billion yuan.

Together with its associates and joint ventures, China Overseas saw its contract sales jump 73.2 percent yearly to 83.6 billion yuan in the first quarter and the gross floor area climbed 70 percent to 4.26 million square meters over the same period.

Source: The Standard

https://www.thestandard.com.hk/section- ... -developer

[winston]

not vested

China Overseas Land & Investment (688 HK)
1H23: Decent Profitability Well Maintained; Expecting Accelerated Investment In 2H

Results are largely in line.

Revenue declined from the high base in 1H22, while core net profit dropped 20.3% yoy to Rmb13.82b, equivalent to 51.4% of full-year forecast.

DPS declined by 12.5% yoy to HK$0.35/share.

COLI’s core net profit margin is so far the highest among peers. Its commercial portfolio also delivered decent results.

However, its land acquisition is slightly behind schedule.

Management is confident of achieving its 2023 target.

Maintain earnings forecast and BUY rating. Lower NAV-derived target price by 4.7% to HK$25.86.

Source: UOBKH

https://research.uobkayhian.com/content ... 0d6cb5e8ac

[winston]

not vested

China Overseas Land & Investment (688 HK)
3Q23: Improved Results; Likely To Meet Its 2023 Target

3Q23 revenue rose 61% yoy to Rmb28.3b on:
a) a low base in 3Q22, and
b) policy easing measures.

In 9M23, revenue decreased 3.2% yoy, while operating profit was Rmb22.6b, implying an operating margin of 19%.

Contracted sales are largely on track and land investment is catching up to its 2023 target.

We expect COLI to achieve its 2023 target and keep the dividend payout ratio stable in 2023. Maintain BUY with an unchanged target price of HK$25.86.

Source: UOBKH

https://research.uobkayhian.com/content ... d03a528893

[winston]

not vested

China Overseas Land & Investment (688 HK)
2023: Results Beat Expectations; Watching For Stabilisation Of Profitability In 2024

Attributable net profit after tax IP revaluation gain & losses grew 12% to Rmb22.58m,
beating our estimates by 5%.

DPS is flat yoy at HK$0.80/share, implying a dividend payout ratio of 34% over core net profit.

Gross profit margin stayed above 20% with no inventory impairment booked in 2023.

Management is planning for Rmb700b (-11% yoy) of high-quality saleable resources for 2024 and targets 25% growth in IP revenue.

Finetune earnings forecast and maintain BUY. Target price: HK$19.42.

We maintain BUY on COLI with an unchanged target price of HK$19.42, derived from a
50% discount to its estimated NAV of HK$38.80. Our target price implies 8.3x 2025F P/E
and 4% 2025 dividend yield.

Source: UOBKH

https://research.uobkayhian.com/content ... 730b14a8cf

[winston]

not vested

Profit rise buoys China Overseas

Operating profit, excluding net foreign exchange gains and losses, jumped 22.2 percent yearly in the first quarter.

But total operating profit of 6.65 billion yuan (HK$7.19 billion) was up by just 0.15 percent.

Revenue rose 14.4 percent to 36.5 billion yuan.

Contracted property sales fell 28 percent to 60.21 billion yuan, down from 83.6 billion.

The gross floor area involved was down to 2.02 million square meters from 4.26 million sq m a year ago.

It said the group's net gearing and borrowing costs were at "industry-low levels."

Source: The Standard

https://www.thestandard.com.hk/section- ... a-Overseas