CHINA OVERSEAS (00688) rose more than 5% in morning trading. As of the time of writing, the stock was up 5.15%, trading at HK$14.71, with a turnover of HK$555 million.
Recently, CHINA OVERSEAS released its first-quarter 2026 financial results, reporting revenue of RMB 37.04 billion and an operating profit of RMB 4.11 billion. During the period, the group, together with its associated companies and joint ventures, achieved contracted property sales of RMB 51.52 billion, an increase of 11% year-on-year, with a corresponding sales area of 1.82 million square meters. The group acquired three new land plots in two cities in mainland China and Hong Kong, adding 130,000 square meters of gross floor area to its land reserves, with a land cost of RMB 2.13 billion.
Citigroup issued a research report stating that it has initiated a 30-day positive catalyst watch on CHINA OVERSEAS (00688), citing the company's industry-leading land acquisition spending of RMB 92.4 billion across 15 cities last year. The bank currently assigns a target price of HK$14.20 and a "Buy" rating.
The company reported strong sales of RMB 51.1 billion in the first quarter of this year, an 11% increase compared to the same period last year. The bank expects robust sales to continue in the second quarter, following strong performance in March. Additionally, the company's strong balance sheet enables it to undertake large-scale integrated projects in core cities. Effective cost management has resulted in the lowest sales and administrative expense ratios and financing costs in the industry. Coupled with expansion across the entire industry chain, rental income continues to grow, and the company has already issued a commercial real estate investment trust.
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