Huachuang keeps HKD 15.70 target for China Overseas stock

Published on 10/07/2026 at 06:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Huachuang assigns China Overseas stock a Buy rating and HKD 15.70 target. First-half revenue rose 17.30 percent to RMB 97.60 billion.

China Overseas, HK0688002218, Illustration mit AI erstellt.

China Overseas Land & Investment (ISIN HK0688002218) was assigned a HKD 15.70 target alongside a maintained Buy rating by Huachuang Securities on September 17, 2026, according to Futubull. The recommendation followed the company's first-half operating update and a valuation based on comparable property developers.

Revenue grows as profit declines

In the first half of 2026, operating revenue reached RMB 97.60 billion, up 17.30 percent from the same period in 2025, while net profit attributable to shareholders fell 18.20 percent to RMB 7.03 billion, according to Futubull. The comparison captures the central tension in the results: higher revenue did not translate into higher earnings.

Gross margin was 16.10 percent in the first half, down 1.30 percentage points year over year. Contracted sales reached RMB 134.35 billion, an increase of 11.80 percent, while sales area fell 12.10 percent to 4.50 million square meters.

Sales strength meets margin pressure

China Overseas Land & Investment secured nine land parcels in the first half of 2026 and added 760,000 square meters of gross floor area, with RMB 7.66 billion spent on land acquisition, Futubull reported. By the end of August 2026, the group had acquired 18 additional parcels since the start of the year, with attributable land spending of RMB 33.34 billion.

The analyst case therefore rests on operating scale, land-bank replenishment and financing advantages, while the lower margin and weaker sales area provide a counterweight. Huachuang Securities forecast earnings per share of RMB 0.94 for 2026, RMB 0.95 for 2027 and RMB 1.07 for 2028, and based its HKD 15.70 valuation on a 14.50 times 2026 price-to-earnings multiple.

Market value reaches HKD 142.7 billion

China Overseas Land & Investment had a market capitalization of HKD 142.7 billion as of October 7, 2026. The company operates in real estate development, commercial property operations and related services across China and other markets, giving the earnings comparison direct importance for the valuation framework.

The further course of trading is shown by the continuously updated real-time quote of China Overseas stock.