tiprankstipranks
Trending News
More News >
China Overseas Grand Oceans Group Limited (HK:0081)
:0081

China Overseas Grand Oceans Group Limited (0081) AI Stock Analysis

Compare
3 Followers

Top Page

HK

China Overseas Grand Oceans Group Limited

(0081)

Rating:55Neutral
Price Target:
HK$2.00
▲(18.34%Upside)
The overall stock score is primarily influenced by the company's mixed financial performance, which is hindered by inconsistent revenue and profit growth and cash flow challenges. Despite this, the valuation appears attractive due to a low P/E ratio and high dividend yield. Technical analysis suggests a bearish trend, which may pose short-term risks. The score reflects the need for improved financial metrics and market sentiment to boost investor confidence.
Positive Factors
Funding and Expertise
The company enjoys easy access to expertise on property development and cheaper-than-peers funding due to its strong parentage.
Sales Performance
Presales faring better than feared, with COGO's presales outperforming peers despite market concerns.
Valuation
Current valuation at 0.18x FY25F PB is close to distressed developer levels and looks undervalued vs SOE counterparts.
Negative Factors
Development Margins
Larger than expected pressure on development margins; weaker than expected physical market performance in Tier 3-4 cities.
Earnings Outlook
COGO’s earnings outlook may remain pressured from expectations of weak revenue booking and low booking margins.
Revenue Booking
COGO’s near-term earnings outlook may remain pressured on weaker revenue booking outlook with consolidated unbooked sales at Rmb43.2bn.

China Overseas Grand Oceans Group Limited (0081) vs. iShares MSCI Hong Kong ETF (EWH)

China Overseas Grand Oceans Group Limited Business Overview & Revenue Model

Company DescriptionChina Overseas Grand Oceans Group Limited, an investment holding company, invests in, develops, and leases real estate properties in the People's Republic of China. It operates through Property Investment and Development, Property Leasing, and Other segments. The Property Investment and Development segment constructs residential and commercial properties. The Property Leasing segment leases office units, commercial units, and hotel properties. The Other segment operates a hotel. It is also involved in fund raising activities; and provision of financing and investment, and property management services. The company was formerly known as Shell Electric Manufacturing (Holdings) Co. Ltd. and changed its name to China Overseas Grand Oceans Group Limited in March 2010. The company was founded in 1955 and is based in Hong Kong, Hong Kong.
How the Company Makes MoneyChina Overseas Grand Oceans Group Limited generates revenue primarily through its real estate development activities. The company earns money by developing and selling residential and commercial properties, which include apartments, offices, and retail spaces. Additionally, it generates income from property leasing and management services. The company benefits from strategic partnerships and collaborations with local governments and other real estate firms, enhancing its project development capabilities and expanding its market reach. The company's earnings are significantly influenced by China's real estate market dynamics, government policies, and economic conditions that impact property development and sales.

China Overseas Grand Oceans Group Limited Financial Statement Overview

Summary
China Overseas Grand Oceans Group Limited shows mixed financial performance. While operational efficiency is supported by stable EBIT and EBITDA margins, revenue and profit growth are inconsistent, and there are concerns about cash flow generation. The high debt levels suggest potential financial risk, but stable equity ratios offer some balance. Overall, the company faces challenges in growth and cash flow management amid a leveraged balance sheet.
Income Statement
55
Neutral
The company has experienced inconsistent revenue growth, with a decline in the most recent year. Gross profit margin has been decreasing, indicating potential cost management issues, and net profit margin has also declined significantly. However, EBIT and EBITDA margins have remained relatively stable, suggesting operational efficiency.
Balance Sheet
60
Neutral
The debt-to-equity ratio is relatively high, raising concerns about financial leverage. However, the equity ratio remains stable. Return on equity has been decreasing, indicating less efficient use of equity capital. The balance sheet reflects potential risks from high leverage, but equity stability provides some support.
Cash Flow
40
Negative
The company has faced challenges in generating positive free cash flow, with negative free cash flow in most of the recent years. Operating cash flow has also been inconsistent, and the operating cash flow to net income ratio is currently unavailable due to zero operating cash flow. This highlights concerns over cash flow management and sustainability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
45.90B56.41B67.54B65.44B48.62B
Gross Profit
4.52B6.31B10.31B15.50B13.48B
EBIT
2.21B4.21B7.23B12.19B10.71B
EBITDA
2.34B4.30B7.34B10.29B9.68B
Net Income Common Stockholders
954.05M2.30B3.15B5.05B4.37B
Balance SheetCash, Cash Equivalents and Short-Term Investments
27.29B26.02B32.93B39.75B33.28B
Total Assets
129.18B152.03B202.97B243.17B198.49B
Total Debt
40.14B43.60B55.64B58.85B48.10B
Net Debt
12.85B17.58B22.71B19.10B14.82B
Total Liabilities
91.63B113.90B160.98B199.43B166.20B
Stockholders Equity
31.40B31.30B33.62B35.14B28.61B
Cash FlowFree Cash Flow
9.02B9.07B-4.49B-3.74B-5.88B
Operating Cash Flow
9.03B9.10B-4.49B-3.69B-5.86B
Investing Cash Flow
187.07M-1.53B-867.97M1.17B-1.78B
Financing Cash Flow
-7.55B-6.96B1.64B7.86B8.40B

China Overseas Grand Oceans Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.69
Price Trends
50DMA
1.76
Negative
100DMA
1.80
Negative
200DMA
1.82
Negative
Market Momentum
MACD
-0.02
Positive
RSI
42.82
Neutral
STOCH
38.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0081, the sentiment is Negative. The current price of 1.69 is below the 20-day moving average (MA) of 1.72, below the 50-day MA of 1.76, and below the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0081.

China Overseas Grand Oceans Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$2.83B10.980.41%8438.90%5.81%-21.06%
55
Neutral
HK$6.02B5.823.05%8.28%-20.27%-59.83%
$274.25M
$23.72B6.179.66%6.59%
$1.38B-341.41%
$468.58M-71.13%
$630.28M-29.26%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0081
China Overseas Grand Oceans Group Limited
1.68
-0.44
-20.75%
EGRNF
China Evergrande Group
0.01
-0.01
-50.00%
CRBJF
China Resources Land
3.08
-0.64
-17.20%
CTRYF
Country Garden Holdings Co
0.01
-0.11
-91.67%
GZUHF
Guangzhou R&F Properties Co
0.12
0.02
20.00%
LPHHF
Logan Property Holdings Co
0.11
0.00
0.00%

China Overseas Grand Oceans Group Limited Corporate Events

China Overseas Grand Oceans Reports Decline in May Sales but Expands Land Holdings
Jun 6, 2025

China Overseas Grand Oceans Group Limited reported a decline in property contracted sales for May 2025, with a year-on-year decrease of 21.1% in sales value and 20.0% in gross floor area. Despite the downturn, the company acquired three new projects in Nanning, Hefei, and Lanzhou, expanding its land bank by 563,337 square meters at a cost of RMB1,573,890,000. This strategic acquisition could potentially enhance the company’s future growth prospects and strengthen its market position.

The most recent analyst rating on (HK:0081) stock is a Buy with a HK$2.44 price target. To see the full list of analyst forecasts on China Overseas Grand Oceans Group Limited stock, see the HK:0081 Stock Forecast page.

China Overseas Grand Oceans Group Limited Announces General Meeting for Strategic Approvals
May 29, 2025

China Overseas Grand Oceans Group Limited has announced a general meeting scheduled for June 23, 2025, in Hong Kong. The meeting will address the approval and ratification of the Renewal Engagement Agreement and related transactions, as well as the authorization for directors to execute necessary documents. This announcement is significant for stakeholders as it outlines the company’s strategic plans and governance actions, potentially impacting its operational and financial trajectory.

The most recent analyst rating on (HK:0081) stock is a Buy with a HK$2.40 price target. To see the full list of analyst forecasts on China Overseas Grand Oceans Group Limited stock, see the HK:0081 Stock Forecast page.

China Overseas Grand Oceans Reports Decline in April Sales but Expands Land Portfolio
May 9, 2025

China Overseas Grand Oceans Group Limited reported a decrease in property contracted sales and gross floor area (GFA) for April 2025, with sales amounting to RMB2.624 billion and a GFA of 223,000 square meters, marking year-on-year declines of 18.1% and 14.6%, respectively. Despite these declines, the company acquired new projects in Yangzhou and Shaoxing, contributing to a total newly acquired GFA of 504,992 square meters from January to April 2025, at a total land cost of RMB2.982 billion. This strategic acquisition could potentially strengthen the company’s market presence and future growth prospects.

China Overseas Grand Oceans Renews Agreement with CSCECL for Construction Services
May 9, 2025

China Overseas Grand Oceans Group Limited has announced the renewal of its existing engagement agreement with China State Construction Engineering Corporation Limited (CSCECL) for construction-related services. The new agreement, effective from July 1, 2025, to June 30, 2028, allows CSCECL to continue participating in competitive tenders for the company’s projects in the PRC. This renewal is significant as CSCECL is a connected person of the company, and the transactions are subject to various regulatory requirements, including independent shareholder approval.

China Overseas Grand Oceans Group Limited Announces Annual General Meeting and Key Resolutions
Apr 24, 2025

China Overseas Grand Oceans Group Limited has announced its annual general meeting scheduled for June 23, 2025, in Hong Kong. Key agenda items include the consideration of audited financial statements, the declaration of a final dividend, the re-election of directors, and the authorization for the board to fix directors’ and auditors’ remuneration. Additionally, a resolution will be discussed to authorize the company to buy back shares, not exceeding 10% of the issued shares, which could impact the company’s stock market activities and shareholder value.

China Overseas Grand Oceans Group Reports Decline in Q1 2025 Financial Performance
Apr 23, 2025

In the first quarter of 2025, China Overseas Grand Oceans Group Limited reported a significant decline in financial performance, with a 22.8% drop in revenue and a 48.6% decrease in operating profit compared to the previous year. The company also experienced a decrease in contracted property sales by 12.5% in value and 15.9% in area sold. Despite these challenges, the company expanded its land holdings by acquiring four new parcels of land, adding to its extensive land bank. The company remains committed to prudent financial management and is closely monitoring external economic factors to maximize long-term shareholder returns.

China Overseas Grand Oceans Reports Decline in Sales Amid Strategic Land Acquisitions
Apr 7, 2025

In March 2025, China Overseas Grand Oceans Group Limited reported a significant decline in its property contracted sales and gross floor area (GFA) compared to the previous year, with a 24.1% and 24.9% decrease respectively. Despite this downturn, the company acquired new projects, including a notable acquisition in Hefei, Anhui Province, indicating a strategic focus on expanding its land holdings. These acquisitions, although costly, suggest an effort to strengthen the company’s market position amidst challenging sales figures.

China Overseas Grand Oceans Group Schedules Q1 2025 Financial Review
Apr 2, 2025

China Overseas Grand Oceans Group Limited has announced an upcoming board meeting scheduled for April 23, 2025, where the board will review and approve the financial and business performance of the company and its subsidiaries for the first quarter of 2025. This meeting is significant as it will provide insights into the company’s operational performance and strategic direction, potentially impacting stakeholders’ perspectives on the company’s future growth and market positioning.

China Overseas Grand Oceans Group Limited Reports 2024 Financial Results Amid Market Challenges
Mar 26, 2025

China Overseas Grand Oceans Group Limited announced its financial results for 2024, reporting a revenue of RMB45,895 million, a decrease of 18.6% from the previous year. The company’s profit attributable to owners fell by 58.5% to RMB954 million. Despite the challenging market conditions, the company maintained a robust financial position with a net cash inflow and reduced net gearing ratio. The board recommended a final dividend of HK7 cents per share, reflecting a dividend payout ratio of 34.9%. The Chinese property sector faced a downturn in 2024, but policy measures introduced in September aimed to stabilize the market, leading to a rebound in home transactions by the fourth quarter.

China Overseas Grand Oceans Group Declares Final Dividend for 2024
Mar 26, 2025

China Overseas Grand Oceans Group Limited announced a final ordinary cash dividend of HKD 0.07 per share for the financial year ending December 31, 2024. The dividend, subject to shareholder approval on June 23, 2025, will be paid on July 15, 2025, with the record date set for June 27, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.