[ET Net News Agency, 24 October 2019] HSBC Global Research lowered its target price for
China Overseas Land & Investment (COLI)(00688) to HK$27.1 from HK$36.6 and downgraded its
rating to "hold" from "buy".
The research house said COLI's 3Q operating profit of HK$7.4bn was lackluster. The
results revealed a more notable margin downtrend as the 3Q operating margin declined to
26% (39% in 1H).
HSBC said the 3Q results is a clear disappointment and will likely raise questions about
COLI's execution ability in the near term. HSBC has had a positive view on the stock on an
expectation of revived earnings momentum, but it now believes such an assumption was
premature and will not materialize in 2H.
It believes 2019 is likely to mark the fourth consecutive year that COLI disappoints on
earnings. HSBC cut its 2019 core earnings forecast by 7.7% to reflect the subdued 9-month
results and weaker-than-expected margin trend. (KL)
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00688 CHINA OVERSEAS
Nominal 
12.760 +0.620 (+5.107%) Others
24/10/2019 17:55
{I-bank focus}HSBC lowers China Overseas (00688) to HK$27.1
| Remark: | Real time quote last updated: 25/04/2024 12:53 |
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