[ET Net News Agency, 4 March 2021] Credit Suisse lifted its target price for China
Overseas Grand Oceans (COGO) (00081) to HK$7.4 from HK$7.3 and maintained its "outperform"
rating.
The research house estimated COGO's sales growth at 28% p.a. over 2020-22, based on its
(1) competitive positioning in quality Tier-3 cities; (2) improving sales execution
capability; and (3) strong balance sheet paving the way for its long-term growth.
Credit Suisse said COGO continued to accelerate its land acquisition, which accounted
for 48%/52%/71% of its contracted sales in 2018/19/20. The supplement of more saleable
resources, together with management's strong execution, should bode well for its sales
growth. Credit Suisse estimated its contracted sales to grow 31% in 2021. (KL)