[ET Net News Agency, 30 March 2021] Goldman Sachs lifted its target price for China
Overseas Land & Investment (COLI) (00688) by 7% to HK$25.9 and maintained its "buy"
rating.
The research house said COLI reported a lower-than-expected 2020 core profit of Rmb35bn.
Post results, Goldman revised down its 2021-23 underlying EPS forecasts by 6%/5%/6% after
factoring in the latest land acquisitions and delivery schedule, lower-than-expected gross
margins, and lower LAT cost forecasts.
The stock is trading at a 40% discount to end-2021 NAV, 5.3x 2020 P/E and 0.7x 2021 P/B
versus the offshore coverage average of 41%, 5.8x and 1.0x. Goldman thinks the stock
represents significant value trading at the trough of its 10-year historical valuation
range. (KL)