China Overseas Land 0688

[winston]

Not vested. From Dr. Check:-

Promised land amid turbulence
Wednesday, June 18, 2008

Many investors are keen on mainland property shares, which have declined 30-60 percent from their peaks reached in October.

But actual unit prices have not plunged because the general housing demand in the mainland remains stable.

It is likely to stay that way for the next 10-20 years as more people move from rural to urban areas.

So, mainland property picks remain very viable.

Obviously in the short term there may be hiccups and some stocks have yet to reach their bottom. But some shares look reasonable.

China Overseas Land & Investment (0688) is one of them. The developer's net profit soared 76 percent to HK$4.18 billion in 2007 from the previous year, and turnover jumped 52 percent to HK$16.63 billion. Operating profit increased by 108 percent to HK$7.1 billion.

With a land reserve of 26 million square meters spanning 21 mainland cities, earnings per share are expected to witness a compound annual growth rate of 32 percent.

The company has low gearing and is more resilient to prevailing credit tightening measures.

Citigroup has a "buy" on the stock and targets HK$16.83.

Citi said the company has already achieved contracted sales of 4.3 billion yuan (HK$4.87 billion) in the first quarter, up strongly from 1.3 billion yuan during the same period last year.

It has cash on hand of 8.57 billion yuan.

The stock is down 40 percent from its October peak. Below HK$12, it looks attractive.

[winston]

Not vested.

China Overseas Land profit soars 69pc

China Overseas Land & Investment (0688), the country's largest property developer by market capitalisation, posted a 68.8 percent rise in first half profit, topping forecasts, as it increased property sales in China.

The Chinese property group said its net profit amounted to HK$2.31 billion for the six months ended in June 2008, compared with HK$1.37 billion in profit during the same period a year ago.

Shares of the China-backed property group, which have fallen 29.9 percent so far in 2008, fell a further 2.1 percent to HK$11.06 ahead of the results.

[winston]

COLI profit soars on mainland sales
AlfredLiu

Net profit of China Overseas Land & Investment (0688) jumped 68.8 percent in the first half on the back of strong mainland property sales.

The developer said that for the six months ended June 30, its net profit soared to HK$2.31 billion from HK$1.37 billion the previous year. It said there was no provision writeback for Hong Kong properties nor revaluation surplus on investment properties during the period.

Attributable profit increased by 94.5 percent, stripping off the effect of revaluation surplus on investment properties (net of HK$180 million in taxation) in the last corresponding period.

Earnings per share were 29.8 HK cents. An interim dividend of 6 HK cents was proposed. Revenue surged 125.2 percent to HK$10.72 billion.

The property sales reached a record HK$15.81 billion in the first half and total gross floor area was 1.47 million square meters. The company expects to sell not less than four million sq m GFA of housing, and targets not less than 3.5 million sq m GFA to be completed this year.

"We will not adjust our targets ... even though the austerity measures in the mainland are expected to continue," said chairman Kong Qingping. The company plans to launch 32 new projects in addition to the 41 remaining developments in the second half.

Meanwhile, sister company China State Construction International Holdings (3311) said net profit for the six months ended June 30 soared 122.4 percent from a year ago to HK$257 million, while earnings per share were 10.55 HK cents. An interim dividend of 3.70 HK cents was declared.

[winston]

Not vested. From UOB-Kay Hian:-

China Overseas Land (688.HK): Target: HK$13.14

− Policymakers appear to be ready to ease the policy on the property sector;

− Being one of the largest property developers in China and under the umbrella of the Ministry of Construction, it is in a better position to survive a prolonged downturn. It is a proxy to China’s property market and will benefit significantly from a market recovery;

− The stock is trading at 30% discount to our NAV of HK$12.70, which has already taken into account a 30% decline in property prices.

[winston]

On my watchlist. Not vested yet..

Developer says sales up 73pc

China Overseas Land and Investment (0688) reported its property sales in September rose 73.1 percent month-on-month to HK$1.96 billion, with total gross floor area increasing 60.6 percent to 221,000 square meters.

The mainland property developer said its total sales of properties for January to September amounted to HK$20.83 billion, up 35.8 percent a year ago and the total GFA sold amounted to two million sq m, an increase of 26.5 percent compared to the same period last year.

[winston]

China Overseas Land to sell $320 mln in new shares

HONG KONG, Dec 11 (Reuters) - China Overseas Land (0688.HK: Quote, Profile, Research, Stock Buzz) said late on Wednesday it planned to raise HK$2.5 billion ($320 million) by issuing new shares for working capital to strengthen its financial position.

The Chinese property group said it would issue up to 314.08 million new shares at HK$8 per share on the basis of one new share for every 25 existing shares held.

The company said its controlling shareholder had undertaken to apply for the shares.

[winston]

DJ MARKET TALK: DBS Upgrades China Overseas Land To Buy From Hold

1106 [Dow Jones] STOCK CALL: DBS upgrades China Overseas Land (0688.HK) to Buy from Hold, raises target to HK$13.20 from HK$12.35. Notes developer has met 2008 sales target, ups market share to 1.2% from 0.88%; notes company's sales volume grew 26%, while that for overall China fell 18%.

Tips shares' 12% drop last month creates buying opportunity. Cuts FY08 estimated EPS by 3% on slightly higher-than-expected price cuts at Shenzhen projects, but raises FY09, FY10 EPS forecasts by 2%, 6% respectively on better-than-expected pre-sales for some projects, raising NAV estimate by 4% to HK$13.45. China Overseas down 1.3% at HK$10.72 vs HSI's 1.8% drop.(JLI)

[winston]

China Overseas sees China property improving in '09

HONG KONG, Feb 6 (Reuters) - China Overseas Land (0688.HK), the largest local listed mainland property developer, said on Friday the China property market has bottomed out and expects the overall property environment to improve in 2009.

"The (China property) market had gone through a deep adjustment particularly in southern China last year and was already at its bottom," chairman Kong Qingping told reporters. "The environment this year will not be as bad as last year."

Kong said Beijing's measures to support the property market are likely to be effective but homebuyers are still tentative after the China property slide.

Brokerage CLSA and consultants Savills expect average home prices in Beijing and Shanghai to fall 20-25 percent this year, similar to declines in Shenzhen and Guangzhou in 2008.

Beijing concocted a policy mix that included encouraging banks to resume lending to developers as well as tax concessions and cheaper mortgages for home buyers as part of efforts to support the ailing property market amid the global slowdown.

China's economic growth slowed to 6.8 percent in the last quarter of 2008, dragging down the annual rate of expansion to a seven-year low of 9.0 percent. China targets annual growth of 8 percent or above in order to absorb waves of new job seekers.

"I'm confident in the (China) property market, especially if the 8 percent growth is achieved," Kong added but gave no further comment.

( Sure ... )

Shares of the property group, which fell 3.7 percent in January, gained 6.2 percent to HK$10.62 in late trade on Friday.

[winston]

China Overseas Land says met target for 2008 sales

HONG KONG, Feb 11 (Reuters) - China Overseas Land (0688.HK), the largest local-listed mainland property developer, said it met its target for property sales in 2008, while January sales were boosted by strong demand in central and eastern China.

The mainland property firm said late on Tuesday it sold HK$26.61 billion ($3.41 billion) worth of property in 2008, up 19.3 percent from the previous year.

The total gross floor area sold amounted to 2.71 million square meters, an increase of 25.4 percent from 2007. The company said the figure met its target of selling 2.7 million meters for the year, and in spite of concerns about weak sentiment in China's property market.

Strong sales in the Yangtze River Delta Region and central China boosted its January sales 60 percent on the year to 1.202 billion yuan ($176.1 million) with total gross floor area sold surging about 150 percent to 160,000 square meters.

It gave no further details on the rise.

The property developer said it had a land reserve of 25.27 million square meters, sufficient for its development use in the next 4 to 5 years.

Last week, China Overseas Land's Chairman Kong Qingping said the China property market had bottomed out and expected the overall property environment to improve in 2009.

Shares of the company fell 1.86 percent to HK$10.54 on Wednesday morning, better than a 3.4 percent fall in the benchmark Hang Seng Index

[winston]

DJ MARKET TALK: China Overseas +1.3% But Valuation Demanding-ICEA

1526 [Dow Jones] China Overseas (0688.HK) turns higher, now +1.3% at HK$10.88 vs HSI down 2.7%; intraday low of HK$10.44 likely near-term floor. Stock boosted by news of strong January sales, +60% on-year at CNY1.2 billion. ICEA says although property transactions generally dropped nationwide in January, sizable developers showing better-than-peer sales; believes price promotion strategy "has and will continue to boost sales effectively."

Still, house keeps Sell call on China Overseas as current valuation "reflects an expensive premium," has priced in optimistic FY09 earnings outlook, with stock trading at 19.7X FY09 P/E with 1% dividend yield; keeps target price at HK$8.00, 20% discount to NAV