CICC has released a research note indicating that, in light of prevailing market sentiment and the pace of project settlements, it has raised its earnings forecasts for China Overseas (00688) by 3% and 5% for the 2026 and 2027 fiscal years respectively, bringing them to 11.9 billion and 11.8 billion RMB. The firm reiterates its "Outperform" rating on the stock.

The company has seen a notable acceleration in both sales and revenue recognition, with attention now turning to the pace of land bank expansion in the second half of the year. For the first half of the year, revenue grew 17.3% year-on-year to 97.6 billion RMB, while gross margin declined 1.3 percentage points year-on-year to 16.1%. Core profit attributable to shareholders fell 9.7% year-on-year to 7.93 billion RMB, which came in line with CICC's expectations.

The company has declared an interim dividend of HK$0.23 per share, reflecting a payout ratio of 37% and an interim dividend yield of 1.65%.