UOB Kay Hian released a research report anticipating that CHINA OVERSEAS's (00688) core net profit for 2025 will decline by 18.1% year-on-year, primarily due to falling gross profit margins in its property development business and pressure from impairments. The company's attributable land investment amount increased by 33% year-on-year, surpassing management's targets and showing a clear concentration in tier-one core cities. The firm has lowered its profit forecasts for CHINA OVERSEAS for 2025 to 2027 by 14.6%, 23.7%, and 27.4% respectively, and, due to an expanded net asset value discount, has reduced its NAV-derived target price by 9.2% to HK$15.14, while maintaining a "Buy" rating.
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