BofA Securities released a research report stating that CHINA OVERSEAS (00688) delivered weak Q3 results, prompting a reduction in its target price from HK$16.3 to HK$16, while maintaining a "Buy" rating. The soft Q3 earnings were likely due to timing factors in project completions, with expectations of a rebound in core profits in Q4. Given the anticipated earnings recovery, the bank views CHINA OVERSEAS' current valuation—trading at 8x 2027 forward P/E—as attractive, keeping it as a top sector pick.

The report noted that declining property prices in mainland China may exert greater pressure on CHINA OVERSEAS' FY2025 earnings through inventory impairments. Although FY2025 margins could weaken, an analysis of land reserves reveals that excluding joint ventures, CHINA OVERSEAS holds the youngest land bank in the industry, with only 27% acquired before 2022. This positions the company for lower margin pressure and a quicker rebound in profitability once market conditions improve.