Hong Kong's China Overseas Land & Investment Ltd Q3 revenue reaches RMB32.8 bln

Overview

• China property developer's unaudited Q3 revenue reached RMB32.8 bln

• Contracted property sales for Jan-Sep rose 6.2% yr/yr, sales area fell 19.2%

• Results are unaudited and company highlights focus on first-tier cities

Outlook

• Company did not provide specific financial guidance for the current or future periods in its press release

Result Drivers

• SALES GROWTH - Co said contracted property sales for Jan-Sep rose 6.2% yr/yr despite a decline in sales area

• LAND ACQUISITIONS - Co acquired 14 land parcels in seven mainland cities and Hong Kong, adding 2.16 mln sq m to land reserve

• COST ADVANTAGE - Co said net gearing and borrowing costs remained among the lowest in the industry

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate rental, development & operations peer group is "buy"

• Wall Street's median 12-month price target for China Overseas Land & Investment Limited is HK$17.75, about 42.8% above its October 27 closing price of HK$12.43

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Oct 26 - Guangdong Land nine-month revenue drops 20% on lower property sales

• Oct 28 - China's Dongshan Precision shares fall 2.1% in Hong Kong debut

• Oct 27 - Guangdong Investment 9M revenue rises on water resources strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)