CHINA OVERSEAS (00688) saw its shares rise more than 4%. At the time of writing, the stock was up 4.15% to HK$14.57, with a turnover of HK$368 million.
The company recently announced its first-quarter 2026 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 associates 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 bank, with a land premium of RMB 2.13 billion.
Citigroup has initiated a 30-day positive catalyst watch on CHINA OVERSEAS. The report noted the company's strong sales performance in the first quarter of this year and expects robust sales to continue into the second quarter, following a strong March. Additionally, the company's strong balance sheet positions it well to undertake large-scale mixed-use projects in key cities.
Effective cost management was also highlighted, with the company maintaining the industry's lowest ratios for sales, general, and administrative expenses, as well as financing costs. Coupled with expansion across the entire industry chain, rental income continues to grow, and the company has issued a commercial real estate investment trust.
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