Morgan Stanley issued a research report stating that China Overseas Land (00688) delivered weak first-quarter results. During the period, revenue remained flat, but operating profit fell 28% year-on-year, primarily due to the recognition of inventory sales and low-margin projects, which pressured gross margins. If strong sales in certain first-tier cities persist into the second half of the year, there is potential for upward revisions to the 2026 pre-sales and earnings per share forecasts (currently projected to grow 1% and decline 10% year-on-year, respectively). The firm maintains a "Market-Perform" rating with a target price of HK$12.5.
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