China Overseas Land & Investment (0688) AI Stock Analysis

• Market Cap: HK$145.02B
• Dividend Yield: 4.54%
• Average Volume (3M): 21.01M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.37
• Revenue Growth: -9.54%
• EPS Growth: -38.16%
• Country: HK
• Employees: 3,322
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 10,944,884,000
• 10 Day Avg. Volume: 20,986,903
• 30 Day Avg. Volume: 21,009,009
• PEG Ratio: -0.22
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 2.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$15.40
• Price Target Upside: 18.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$15.00 ▲(15.21% Upside)

The overall stock score of 68 reflects a balanced view of the company's financial stability, reasonable valuation, and technical indicators. The most significant factor is the mixed financial performance, with stable cash flow but declining revenues. The stock's valuation is attractive, supported by a reasonable P/E ratio and a solid dividend yield. Technical analysis suggests weak momentum, which slightly offsets the positive valuation.

Positive Factors

Cash Flow Recovery

The strong recovery in free cash flow indicates improved operational efficiency and financial health, providing the company with more flexibility for future investments and debt management.

Stable Balance Sheet

A stable balance sheet with a manageable debt level enhances financial stability and reduces risk, allowing the company to navigate economic fluctuations more effectively.

Diversified Revenue Streams

Diversification into property management and related services provides additional revenue streams, reducing reliance on property sales and enhancing long-term financial resilience.

Negative Factors

Declining Revenue Trend

A declining revenue trend can limit growth potential and impact profitability, necessitating strategic initiatives to reverse this trend and sustain long-term business viability.

Low Profit Margins

Low profit margins indicate challenges in cost management and pricing power, which can affect the company's ability to generate sufficient returns and invest in growth opportunities.

Moderate Profitability

Moderate profitability suggests limited efficiency in converting revenue into profit, which may hinder the company's ability to reinvest in business expansion and innovation.

China Overseas Land & Investment Business Overview & Revenue Model

Company Description

China 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 Money

China Overseas Land & Investment generates revenue primarily through the sale of residential and commercial properties. The company develops and sells a wide range of properties, including apartments, villas, and office buildings, targeting both individual buyers and institutional clients. Additionally, COLI earns income from property management services, providing maintenance and operational support for the properties it manages. Significant revenue comes from land acquisitions, as the company invests in prime locations to develop new projects. Partnerships with local governments and other developers enhance its market access and enable COLI to secure favorable land deals, further contributing to its earnings. The company's extensive portfolio and strong brand reputation allow it to maintain pricing power and consistent demand in the competitive real estate market.

China Overseas Land & Investment Financial Statement Overview

Summary

China Overseas Land & Investment demonstrates a mixed financial performance. The income statement reveals declining revenues and moderate profitability, while the balance sheet is stable with a manageable debt level. The cash flow statement shows recovery and strength in free cash flow. To enhance overall financial health, the company should focus on reversing the declining revenue trend and improving ROE.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	189.45B	185.15B	202.52B	180.32B	294.67B	185.79B
Gross Profit	29.56B	32.76B	41.15B	41.73B	71.05B	66.09B
EBITDA	22.09B	27.80B	42.56B	37.73B	64.40B	59.89B
Net Income	14.56B	15.64B	25.61B	23.26B	40.16B	43.90B
Balance Sheet
Total Assets	901.56B	908.63B	923.60B	1.03T	1.06T	976.56B
Cash, Cash Equivalents and Short-Term Investments	108.96B	124.17B	105.63B	123.85B	160.19B	130.98B
Total Debt	228.41B	242.55B	258.72B	317.04B	308.49B	213.67B
Total Liabilities	483.81B	506.80B	530.69B	606.45B	627.29B	587.26B
Stockholders Equity	386.62B	380.61B	373.02B	397.99B	420.27B	372.46B
Cash Flow
Free Cash Flow	42.78B	46.26B	35.07B	-12.64B	16.70B	5.53B
Operating Cash Flow	41.10B	46.45B	35.28B	-11.90B	16.97B	5.88B
Investing Cash Flow	6.20B	1.84B	-4.77B	-8.14B	-14.47B	-4.04B
Financing Cash Flow	-39.54B	-29.80B	-35.02B	-2.07B	14.43B	8.04B

China Overseas Land & Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 13.02 is above the 20-day moving average (MA) of 12.60, above the 50-day MA of 13.01, and below the 200-day MA of 13.37, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 60.72 is Neutral, neither overbought nor oversold. The STOCH value of 70.75 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0016	74 Outperform	HK$321.94B	16.70	3.16%	3.89%	9.45%	1.21%
1113	70 Outperform	HK$150.77B	13.28	2.92%	4.33%	9.72%	-26.47%
0688	68 Neutral	HK$145.02B	9.66	3.63%	4.54%	-9.54%	-38.16%
1109	68 Neutral	HK$211.50B	7.20	10.17%	5.18%	14.40%	-2.55%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0960	62 Neutral	HK$64.67B	7.55	4.81%	3.96%	-16.02%	-30.04%
2202	40 Underperform	HK$60.69B	-0.64	-23.88%	―	-28.36%	-206.13%

China Overseas Land & Investment Corporate Events

China Overseas Land & Investment Posts 19% Full-Year Drop in 2025 Contracted Sales

China Overseas Land & Investment reported that its China Overseas Series of Companies achieved contracted property sales of approximately RMB39.832 billion in December 2025, down 1.0% year on year, while sales area rose 2.4% to about 1,332,400 square metres, with contributions spanning its southern, eastern, central and western, northern, and Hong Kong/Macau/overseas regions. For the full year 2025, accumulated contracted sales reached around RMB251.231 billion and 10,560,800 square metres, representing year-on-year declines of 19.1% in value and 8.1% in area, highlighting the pressure from China’s ongoing property market downturn, though the group also reported subscribed but not yet contracted sales of roughly RMB2.828 billion that should support near-term revenue conversion and cash flow.

The most recent analyst rating on (HK:0688) stock is a Hold with a HK$15.00 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 2025 Property Sales

China Overseas Land & Investment Limited reported a significant decline in property sales for November 2025, with a year-on-year decrease of 26% in contracted property sales amounting to approximately RMB22.235 billion. The sales area also saw a reduction of 29.8% compared to the previous year. Cumulatively, from January to November 2025, the company recorded contracted property sales of approximately RMB211.399 billion, marking a 21.8% decrease from the previous year. Despite these declines, the company has recorded subscribed property sales of approximately RMB5.068 billion, which are expected to convert into contracted sales in the coming months, indicating potential future revenue.

The most recent analyst rating on (HK:0688) stock is a Hold with a HK$15.00 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 for Car Parking Spaces

China Overseas Land & Investment has entered into a New Framework Agreement with COPL Group for the acquisition of rights-of-use of car parking spaces. This agreement, effective from January 1, 2026, to December 31, 2028, involves transactions that are considered continuing connected transactions under Hong Kong’s Listing Rules. The agreement will be subject to annual review and reporting requirements, but it is exempt from independent shareholders’ approval due to the applicable percentage ratios.

The most recent analyst rating on (HK:0688) stock is a Hold with a HK$15.00 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 Property Sales for October 2025

China Overseas Land & Investment Limited reported a significant decline in its property sales for October 2025, with contracted sales amounting to approximately RMB18.661 billion, marking a 55.1% year-on-year decrease. The sales area also saw a 40.0% decrease. From January to October 2025, the accumulated contracted property sales reached RMB189.165 billion, with a year-on-year decrease of 21.3%. The company also noted RMB2.926 billion in subscribed property sales expected to convert into contracted sales in the coming months, indicating potential future revenue despite current declines.

The most recent analyst rating on (HK:0688) stock is a Hold with a HK$15.00 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 Financial Services Agreement with CSCF

China Overseas Land & Investment has entered into a new Financial Services Master Agreement with China State Construction Finance Limited (CSCF) to continue receiving financial services such as deposit, loan, and factoring services. This agreement, effective from November 1, 2025, to October 31, 2028, ensures that CSCF will provide these services on a non-exclusive basis, maintaining a balance between loans and deposits. The transactions are classified as continuing connected transactions under the Hong Kong Listing Rules, with certain exemptions from reporting and approval requirements, indicating a streamlined process for the company.

The most recent analyst rating on (HK:0688) stock is a Hold with a HK$15.00 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 Construction Partnership with CSC

China Overseas Land & Investment has entered into a New Master Engagement Agreement with China State Construction International Holdings Limited (CSC) to continue their collaboration on construction projects in the PRC, Hong Kong, and Macau. This agreement, effective from January 1, 2026, to December 31, 2028, allows CSC to participate in competitive tenders for the company’s construction works. The agreement is structured under the Listing Rules as a continuing connected transaction, requiring annual review and reporting but exempt from independent shareholders’ approval, indicating a strategic move to maintain operational continuity and strengthen industry positioning.

The most recent analyst rating on (HK:0688) stock is a Hold with a HK$15.00 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 Lists Infrastructure REIT on Shenzhen Exchange

China Overseas Land & Investment Limited announced the successful listing of its CAMC-China Overseas Commercial Assets Closed-end Infrastructure Securities Investment Fund (REIT) on the Shenzhen Stock Exchange. This listing, which raised approximately RMB1.5843 billion, allows the company to diversify its equity financing methods, revitalize infrastructure assets, and improve investment capabilities, ultimately benefiting its long-term performance.

The most recent analyst rating on (HK:0688) stock is a Hold with a HK$15.00 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 Stable Q3 2025 Amid Market Challenges

In the third quarter of 2025, China Overseas Land & Investment Limited reported stable financial performance despite a challenging global economic environment and a downturn in the property market. The company achieved contracted property sales of RMB170.5 billion and acquired nine land parcels in China, enhancing its land reserve. With a revenue of RMB19.78 billion and operating profit of RMB1.03 billion for the quarter, the company maintains its financial soundness and low borrowing costs, positioning itself for steady, sustainable growth.

The most recent analyst rating on (HK:0688) stock is a Hold with a HK$15.00 price target. To see the full list of analyst forecasts on China Overseas Land & Investment stock, see the HK:0688 Stock Forecast page.