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China Overseas Land & Investment Limited (HK:0688)
:0688

China Overseas Land & Investment (0688) AI Stock Analysis

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HK

China Overseas Land & Investment

(OTC:0688)

Rating:70Neutral
Price Target:
HK$15.00
▲(9.49%Upside)
The overall stock score is supported by a stable financial performance and reasonable valuation. The declining revenue trend and moderate profitability are partially offset by a solid balance sheet and strong cash flow recovery. Technical analysis suggests a neutral to slightly positive outlook, while the valuation indicates a potential investment opportunity. The absence of earnings call insights and corporate events keeps the focus on the core financial and market performance.
Positive Factors
Investor Interest
Rising investor interest on retail CREITs, COLI’s well-reputed operating track record and its solid injection pipeline could prompt decent market response on the vehicle.
Presales Growth
COLI targets to achieve presales growth despite another possible year of physical market contraction, with a focus on well-located projects in Tier 1 and core Tier 2 cities.
Revenue Growth
Revenue growth from its rental income portfolio is expected to be maintained at over 10% with the entry of eight new projects.
Negative Factors
Financial Challenges
Margins are under pressure due to ASP declines in Tier 1 and 2 cities, indicating near-term financial challenges.
Key Risks
Key risks include slower than expected presales and project delivery, and larger than expected margin compression.

China Overseas Land & Investment (0688) vs. iShares MSCI Hong Kong ETF (EWH)

China Overseas Land & Investment Business Overview & Revenue Model

Company DescriptionChina Overseas Land & Investment Limited, an investment holding company, engages in the property development and investment, and other operations in the People's Republic of China and the United Kingdom. The company operates through Property Development, Property Investment, and Other Operations segments. It is involved in the investment, development, and rental of residential and commercial properties; issuance of guaranteed notes and corporate bonds; and hotel operation activities. The company also provides construction and building design consultancy services. In addition, it engages in the investment and financing, land consolidation, regional planning, engineering construction, industrial import, commercial operation, and property management. Further, the company offers urban services, including office buildings, flexible working space, shopping malls, star-rated hotels, long-term rental apartments, logistics parks, and architectural design and construction. The company was founded in 1979 and is based in Central, Hong Kong. China Overseas Land & Investment Limited is a subsidiary of China Overseas Holdings Limited.
How the Company Makes MoneyChina Overseas Land & Investment makes money primarily through the development and sale of residential properties, which constitutes the largest portion of its revenue. The company invests in and develops residential projects, which are then sold to individual buyers. Additionally, COLI generates income from leasing commercial and office spaces, providing a steady stream of rental income. The company also engages in property management services, which contribute to its revenue by offering management and operational services for its developments. Significant partnerships with local governments and other real estate companies often facilitate access to prime land resources and investment opportunities, further supporting its revenue growth.

China Overseas Land & Investment Financial Statement Overview

Summary
The company demonstrates a mixed financial performance with declining revenues and moderate profitability. While the balance sheet is stable with manageable debt, there is room for improving ROE. The cash flow statement shows a strong recovery in free cash flow, indicating healthy cash generation. However, sustaining this growth is crucial for future operations.
Income Statement
65
Positive
The company shows a decreasing revenue trend over the years, with total revenue declining from 2020 to 2023. The gross profit margin for 2023 is 17.68%, which is relatively low for the industry. The net profit margin in 2023 is 8.47%, indicating moderate profitability. The EBITDA margin of 13.73% suggests average operational efficiency. The company needs to focus on reversing the declining revenue trend to improve its income statement performance.
Balance Sheet
75
Positive
The debt-to-equity ratio for 2023 is 0.69, which shows a reasonable level of leverage. The equity ratio is 41.28%, indicating a solid equity base relative to total assets. However, the return on equity (ROE) of 6.87% in 2023 suggests room for improving shareholder returns. Overall, the balance sheet is stable with a manageable debt level, but there is potential for enhancing ROE.
Cash Flow
70
Positive
The company shows a significant recovery in free cash flow, with a growth rate of 31.82% from 2022 to 2023. The operating cash flow to net income ratio is 1.81 in 2023, indicating healthy cash generation relative to profits. However, there is a need to sustain free cash flow growth to support future operations and investments. The cash flow position is generally strong but requires ongoing attention to maintain growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue185.15B202.52B204.08B294.67B212.42B
Gross Profit32.76B41.15B41.73B71.05B66.09B
EBITDA27.80B42.56B33.80B63.54B59.89B
Net Income15.64B25.61B23.26B40.16B43.90B
Balance Sheet
Total Assets908.63B923.60B1.03T1.06T976.56B
Cash, Cash Equivalents and Short-Term Investments124.17B105.63B123.85B160.19B130.98B
Total Debt242.55B258.72B317.04B308.49B268.24B
Total Liabilities506.80B530.69B606.45B627.29B587.26B
Stockholders Equity380.61B373.02B397.99B420.27B372.46B
Cash Flow
Free Cash Flow46.26B35.07B-12.64B16.70B5.53B
Operating Cash Flow46.45B35.28B-11.90B16.97B5.88B
Investing Cash Flow1.84B-4.77B-9.21B-20.66B-5.95B
Financing Cash Flow-29.80B-35.02B-2.35B28.78B17.43B

China Overseas Land & Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.70
Price Trends
50DMA
13.30
Positive
100DMA
13.43
Positive
200DMA
13.31
Positive
Market Momentum
MACD
0.15
Negative
RSI
59.61
Neutral
STOCH
49.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0688, the sentiment is Positive. The current price of 13.7 is above the 20-day moving average (MA) of 13.35, above the 50-day MA of 13.30, and above the 200-day MA of 13.31, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 49.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0688.

China Overseas Land & Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
$149.07B8.794.15%4.41%-10.21%-40.22%
63
Neutral
$6.96B18.86-1.16%6.91%4.65%-25.28%
$10.00B5.74
13.28%
$15.43B8.823.52%4.55%
$24.16B7.229.66%1.20%
$8.03B5.396.64%0.71%
$33.24B14.422.88%4.40%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0688
China Overseas Land & Investment
13.80
0.73
5.58%
CHVKF
China Vanke Co
0.66
0.06
10.00%
CHKGF
CK Asset Holdings
4.32
0.77
21.69%
CRBJF
China Resources Land
3.60
0.39
12.15%
LNGPF
Longfor Group Holdings
1.22
-0.13
-9.63%
SUHJF
Sun Hung Kai Properties
11.28
3.18
39.26%

China Overseas Land & Investment Corporate Events

China Overseas Land & Investment Plans Infrastructure Fund Spin-Off
Jun 26, 2025

China Overseas Land & Investment has announced a proposed spin-off and separate listing of a publicly traded infrastructure securities investment fund on the Shenzhen Stock Exchange. The spin-off involves the disposal of a shopping mall project in Foshan, China, to an Infrastructure REIT, with the company subscribing to 20% of the fund’s units. This move is part of a strategic effort to raise RMB1.355 billion and restructure asset ownership, potentially impacting the company’s financial consolidation and market positioning.

The most recent analyst rating on (HK:0688) stock is a Buy with a HK$16.50 price target. To see the full list of analyst forecasts on China Overseas Land & Investment stock, see the HK:0688 Stock Forecast page.

China Overseas Land & Investment Secures Shareholder Approval for Key Resolutions
Jun 25, 2025

China Overseas Land & Investment Limited announced that all resolutions proposed at its Annual General Meeting on June 25, 2025, were successfully passed. Key resolutions included the approval of the financial statements for 2024, the declaration of a final dividend, the re-election of directors, and the adoption of a new articles of association. These outcomes reflect strong shareholder support and are likely to reinforce the company’s strategic direction and governance structure.

The most recent analyst rating on (HK:0688) stock is a Buy with a HK$16.50 price target. To see the full list of analyst forecasts on China Overseas Land & Investment stock, see the HK:0688 Stock Forecast page.

China Overseas Land & Investment Announces Change in Company Secretary
Jun 25, 2025

China Overseas Land & Investment Limited has announced a change in its company secretary position. Mr. Chong Wai Sang has resigned, and Mr. Lam Timothy Andrew has been appointed as the new company secretary effective 1 July 2025. Mr. Lam brings over 20 years of experience in legal and accounting fields and is well-qualified with memberships in several professional bodies. The board expressed gratitude to Mr. Chong for his contributions and welcomed Mr. Lam to his new role.

The most recent analyst rating on (HK:0688) stock is a Buy with a HK$17.70 price target. To see the full list of analyst forecasts on China Overseas Land & Investment stock, see the HK:0688 Stock Forecast page.

China Overseas Land & Investment Reports Strong Sales Growth in May 2025
Jun 6, 2025

China Overseas Land & Investment Limited reported a significant increase in contracted property sales for May 2025, amounting to approximately RMB23.854 billion, marking a 21.1% year-on-year growth. However, the sales area saw a decrease of 19.1% compared to the previous year. From January to May 2025, the accumulated contracted property sales reached RMB90.438 billion, with a decrease in sales area by 5.6% year-on-year. The company also recorded subscribed property sales of approximately RMB9.847 billion, expected to convert into contracted sales in the coming months, indicating a steady pipeline of future revenue.

The most recent analyst rating on (HK:0688) stock is a Buy with a HK$15.90 price target. To see the full list of analyst forecasts on China Overseas Land & Investment stock, see the HK:0688 Stock Forecast page.

China Overseas Land & Investment Renews Agreement with CSCECL
May 16, 2025

China Overseas Land & Investment has renewed its agreement with China State Construction Engineering Corporation Limited (CSCECL) for a three-year term starting July 2025. This New Master Engagement Agreement allows CSCECL to participate in tenders for construction-related services in the PRC, with the transactions classified as continuing connected transactions. The agreement is subject to annual review and reporting requirements but does not require independent shareholders’ approval. The financial impact of these transactions is not directly tied to the company’s performance, as engagements are open to third-party contractors.

The most recent analyst rating on (HK:0688) stock is a Buy with a HK$16.50 price target. To see the full list of analyst forecasts on China Overseas Land & Investment stock, see the HK:0688 Stock Forecast page.

China Overseas Land & Investment Reports Decline in Early 2025 Property Sales
May 9, 2025

China Overseas Land & Investment Limited reported a decrease in property sales for the first four months of 2025, with a 7.5% year-on-year drop in April’s contracted sales amounting to approximately RMB20.164 billion. The company also experienced a 21.2% decline in sales area for the same month. Accumulated sales from January to April 2025 reached approximately RMB66.583 billion, marking an 18.8% decrease compared to the previous year. Despite these declines, the company has recorded subscribed property sales of approximately RMB7.956 billion, expected to convert into contracted sales in the coming months.

China Overseas Land & Investment Announces Virtual AGM with Key Resolutions
Apr 28, 2025

China Overseas Land & Investment Limited has announced its annual general meeting to be held virtually on 25 June 2025. Key agenda items include the adoption of financial statements, approval of a final dividend, re-election of directors, and authorization for share buybacks, highlighting the company’s focus on shareholder returns and governance.

China Overseas Land & Investment Reports Strong Q1 2025 Performance Amid Economic Challenges
Apr 25, 2025

In the first quarter of 2025, China Overseas Land & Investment Limited reported a resilient performance despite global economic challenges, achieving contracted property sales of RMB46.42 billion and acquiring nine land parcels across seven Chinese cities. The company’s revenue reached RMB36.73 billion with an operating profit of RMB5.67 billion, supported by strong financial health and low borrowing costs, positioning it well for sustainable growth amid efforts to stabilize the property market.

China Overseas Land & Investment Schedules Q1 2025 Financial Review
Apr 9, 2025

China Overseas Land & Investment Limited has announced that its board of directors will convene on April 25, 2025, to review and approve the financial and business performance of the company and its subsidiaries for the first quarter of 2025. This meeting is crucial as it will provide insights into the company’s operational progress and strategic direction, potentially impacting its market positioning and stakeholder interests.

China Overseas Land & Investment Reports Decline in Q1 2025 Property Sales
Apr 7, 2025

China Overseas Land & Investment Limited reported a significant decrease in contracted property sales for March 2025, amounting to approximately RMB21.200 billion, a 48.6% year-on-year decline. Despite this, the accumulated contracted property sales from January to March 2025 reached RMB46.420 billion, showing a 22.9% decrease compared to the previous year. The company also recorded subscribed property sales of approximately RMB7.729 billion, expected to convert into contracted sales in the coming months, indicating potential future growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 25, 2025