Sinolink Securities issued a research report stating that China Overseas Development (00688) disclosed its third-quarter 2024 operation and performance: Revenue reached 109.58 billion yuan from January to September 2024, a year-on-year decrease of 6.7%; achieved net income of 18.18 billion yuan, a year-on-year decrease of 19.6%.

The bank stated that due to the pace of project turnover and the structural impact of high land prices and low gross profit projects, the company's revenue and operating profit have declined so far this year, with the decline in operating profit exceeding the decline in revenue. From January to September 2024, the company achieved sales of 198.848 billion yuan, a year-on-year decrease of 16.8%, while the top 10 real estate enterprises during the same period decreased by 32.5% year-on-year. The company's sales resilience is significantly stronger than that of the top 10 real estate enterprises; the sales area is 7.6304 million square meters, a year-on-year increase of 26.1%. From January to September 2024, the company's total sales ranked second among the top 100 real estate companies in Keppel, one place higher than the same period last year.

The bank further pointed out that the company's sales are stronger than the overall market, with a highly focused investment and stable financial security. Short-term performance is expected to be under pressure. After the industry stabilizes following the decline, the company is expected to benefit first, and future performance is expected to return to a growth trajectory. The bank slightly lowered the company's net income attributable to shareholders for 2024-2026 to 24.25 billion yuan/26 billion yuan/27.09 billion yuan (originally forecasted as 26.71 billion yuan/28.96 billion yuan/31.1 billion yuan), with year-on-year growth rates of -5.3%, 7.2%, and 4.2% respectively. The company's current stock price corresponds to PE valuations of 6.0x/5.6x/5.4x, maintaining a 'buy' rating.