Jingu Financial News | Haitong International issued a research report, stating that China Overseas Development (00688) achieved main business revenue of 86.94 billion yuan in the first half of 2024, a year-on-year decrease of 2.5%. Among them, real estate development revenue was 82.039 billion yuan, a year-on-year decrease of 3.24%; commercial property operation revenue was 3.538 billion yuan, a year-on-year increase of 19.78%; other business revenue was 1.359 billion yuan, a year-on-year decrease of 4.08%. In the first half of 2024, the company's net income attributable to owners was 10.31 billion yuan, with core net income attributable to owners at 10.64 billion yuan. The Board of Directors announced an interim dividend of HK$0.30 per share, an increase of 4 percentage points to 28.3%.
The bank continued to point out that in the first half of 2024, the group's contracted property sales amounted to 148.38 billion yuan, a year-on-year decrease of 17.65%, with a sales floor area of 5.44 million square meters, a year-on-year decrease of 32.34%. In the first half of 2024, the company achieved contracted sales of 107.5 billion yuan in first-tier and strong second-tier cities, accounting for 83% of the group's series companies (excluding CIFI Holdings). Peking, Shanghai, and Shenzhen ranked first in terms of market share in local markets. In the first half of 2024, the company acquired 6 new parcels of land, with a total newly built area of 1.17 million square meters, total land price of 12.89 billion yuan, and total property value added of 27.99 billion yuan. From 2022 to present, the company's investment in first-tier and strong second-tier cities has remained above 85%, with a significant increase in investment in first-tier cities. In the first half of 2024, first-tier cities accounted for 67% of the total land acquisition amount. As of the end of the first half of 2024, the total land reserves of the group's series companies reached 49.05 million square meters, with CIFI Holdings' land reserves at 33.22 million square meters.
The bank predicts the company's EPS for 2024-2025 to be approximately 2.55 yuan and 2.85 yuan. The bank is bullish on the company's sustainable development capabilities brought by its strong financial strength, believing that the company can gain a continuous advantage in the current round of supply-side reform competition. The company is given a 2024 PE valuation of 7 times, corresponding to a reasonable price of 17.85 yuan, i.e., a target price of 19.40 Hong Kong dollars per share, with an 'Outperform the Market' rating.
