Daiwa: China Overseas Development (00688.HK) Pre-sales Prospects Remain Strong, Rated "In line with the market"

According to the Zhidao Finance APP, Morgan Stanley released a research report stating that China Overseas Development (00688.HK) had weak first quarter performance. During the period, revenue remained flat, but operating profit fell by 28% year-on-year, mainly due to the confirmation of inventory sales and low-profit margin projects, leading to pressure on gross profit margin. If the strong sales in certain first-tier cities continue into the second half of the year, it is expected that the pre-sale amount and earnings per share forecast for 2026 still have room for upward adjustment (currently forecasted to increase by 1% and decrease by 10% year-on-year, respectively); with a rating of "in sync with the market," the target price is 12.5 Hong Kong dollars.