Date: October 2, 2024
Broker: UOB Kay Hian
Company Overview
China Overseas Land & Investment Limited (COLI) is one of China’s leading property developers, specializing in residential, commercial, and industrial real estate.
Market Position
- Strong Market Presence: COLI has established a significant footprint in the Chinese property market, known for its high-quality developments and strong sales performance.
Financial Performance
- Sales Growth Expectations: The company is expected to benefit from improved sales due to the recent relaxation of home purchase restrictions (HPR) in major cities. This policy change is anticipated to stimulate demand and increase transaction volumes.
Strategic Developments
- Target Price Adjustment: COLI’s target price has been raised to HK$19.20, reflecting a reduction in the net asset value (NAV) discount from 60% to 55%. This adjustment is based on an enhanced outlook for the company’s sales and profitability.
Future Outlook
- Growth Drivers: The expected recovery in the property market and strategic initiatives undertaken by COLI position the company for continued growth. The effectiveness of government policy changes will be crucial for sustaining demand in the coming months.
Investment Recommendation
- Buy Rating: Maintain a BUY recommendation, indicating confidence in COLI’s strong market position and its ability to capitalize on favorable market conditions for enhanced performance in the property sector.
