China Overseas Land Could Benefit from Stabilizing Residential Prices in Some Chinese Cities
Dow Jones
Aug 28
0342 GMT - China Overseas Land & Investment is likely a key beneficiary of stabilizing residential prices in China's Tier 1 and major Tier 2 cities, say DBS Group Research analysts in a note. Policy relaxation in such cities have supported prices recently and the property company has strong exposure to these markets, they note. This should support a gradual recovery in development segment margins in the near-to-medium term, they add. The analysts reckon the stock warrants a higher valuation multiple, adding that it currently trades at 0.35X its forward 2027 price-to-book-value ratio, below its five-year average. DBS raises its target price to 18.75 Hong Kong dollars from HK$16.20 and maintains a buy rating. Shares rise 1.8% to HK$14.43.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.