Morgan Stanley Maintains Equal-weight Rating on CHINA OVERSEAS with HK$12.5 Price Target
Deep News
May 04
Morgan Stanley issued a research report stating that CHINA OVERSEAS (00688) reported weak first-quarter results. During the period, revenue was flat, but operating profit fell 28% year-on-year. This was primarily due to the recognition of inventory sales and low-margin projects, which put pressure on the gross profit margin. The report noted that if strong sales in certain first-tier cities persist into the second half of the year, there could still be room for upward revisions to the 2026 presales and earnings per share forecasts (currently projected to increase by 1% and decline by 10% year-on-year, respectively). The firm assigned an "Equal-weight" rating with a target price of HK$12.5.
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