[ET Net News Agency, 17 July 2018] Credit Suisse lowered its target price for China
Overseas Land & Investment (COLI)(00688) to HK$32.3 from HK$36.3, and reiterated its
"outperform" rating.
The research house believes that COLI should remain highly committed to its fast asset
churn strategy after the satisfactory contracted-sales performance over 1H. The
newly-introduced share option scheme should offer better incentive and thus further
improve execution.
Credit Suisse's recent site visit reaffirmed its positive stance on COLI's turnaround as
evidenced by its: (1) quality land bank reserve + accelerating commencement to provide
more sufficient saleable resources, and (2) newly-implemented project-based management
structure to improve the local team's execution.
While contracted sales growth has stayed well on track, Credit Suisse sees some downside
on FY2018 earnings given the timing lag for booking. It cut its FY2018-19 core profit
forecasts by 14% and 15%, and expects its 1H profit to remain flat due to the tight
booking. (KL)
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00688 CHINA OVERSEAS
Nominal 
12.140 +0.340 (+2.881%) Others
17/07/2018 17:25
[I-bank focus]CS lowers China Overseas (00688) to HK$32.3
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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