Huatai Securities: Slightly lowers China Overseas Property target price to 7.36 Hong Kong dollars, maintains "buy" rating.

Huatai Securities released a research report stating that in the first half of this year, China Overseas Property achieved revenue of 7.09 billion yuan, an annual increase of 4%; net profit attributable to shareholders was 770 million yuan, a year-on-year increase of 4%, lower than the company's guidance. The growth rate of the company's revenue has slowed down, mainly due to the continued withdrawal from low-quality projects, as well as the drag from value-added services. The bank is optimistic about the company's continued quality and steady growth, gradually increasing the dividend payout ratio, and maintaining a "buy" rating. Looking ahead to the full year, the bank expects the company's net profit attributable to shareholders to achieve year-on-year positive growth, but it may be difficult to achieve double-digit growth; it is expected that the company will continue to push for a steady increase in the dividend payout ratio, gradually increasing shareholder returns. Taking into account the company's continuous withdrawal from low-quality projects and the relatively low operating performance of value-added services, the bank has lowered the earnings per share for 2025 to 2027 by 6%, 10%, and 13%, respectively, to 0.48 yuan, 0.52 yuan, and 0.57 yuan, with the target price slightly reduced from 7.74 Hong Kong dollars to 7.36 Hong Kong dollars.