[ET Net News Agency, 30 March 2021] Citi Research lifted its target price for China
Overseas Land & Investment (COLI) (00688) to HK$23.5 from HK$21 but downgraded its rating
to "neutral" from "buy" on its relatively vague contracted sales guidance of
"double-digit" growth per year under their new "5-year plan".
With price controls still very tight in higher-tier cities, the research house sees
COLI's overall net profit margin will be under downward pressure on a still very high
level (20.5%). Also, its 2025 rental revenue target is behind other major players.
Citi expects COLI can deliver mid-single-digit growth in core net profit for FY2021-23
while such a growth rate is unexciting after recent share price rebounds. (KL)