CLSA has maintained its "Outperform" rating on CHINA OVS PPT (02669) while reducing the target price from HK$6.1 to HK$5.5. The company reported steady revenue growth last year; however, challenging market conditions led to a contraction in profit margins and a decline in earnings. The brokerage anticipates that CHINA OVS PPT will continue its business expansion, supported by its parent company, China Overseas Development, and its ability to secure third-party projects, although the pace of growth is expected to moderate.

In light of the difficult operating environment, CLSA has lowered its profit forecasts for the company for 2026 and 2027 by 19.9% and 19.1%, respectively. Revenue increased by 6% year-on-year, but the gross profit margin fell by 1.6 percentage points due to pricing pressures and a slower conversion rate of property management contracts. Net profit declined by 9.7% to RMB 1.4 billion.

Including a special dividend, the total dividend declared for the year was HK$0.20, representing an 11.1% increase compared to the previous year. Management has expressed its intention to gradually raise the dividend payout ratio.