[ET Net News Agency, 22 January 2020] Daiwa Research raised its target price for China
Overseas Land & Investment (COLI)(00688) to HK$36.6 from HK$34.1 and maintained its "buy"
rating.
The research house thinks COLI's strong fundamentals in managing its property
development business appear to have been neglected by the market in recent years, but the
pick-up in its share-price performance since 4Q 2019 suggests that some investors have
spotted this opportunity.
Daiwa said COLI has been scaling up its operating scale and contract sales since 2016
without over-stretching its balance sheet. Instead, its net gearing remains under control
and COLI looks to have achieved a leap in scale, mainly through enhancing asset turnover
and robust cost control, which has resulted in an expanding profit margin. (KL)