Jinwu News | Haitong Securities issued a research report stating that China Overseas Property (02669) 1H 2024, the company's overall income increased by 9.0% year-on-year to RMB 6.838 billion; overall gross profit increased by 14.2% year-on-year to RMB 1.148 billion; gross margin was 16.8%, up by 0.8 percentage points compared to the same period in 2023; the net profit attributable to shareholders increased by 16% year-on-year, reaching RMB 0.738 billion. Basic and diluted earnings per share were RMB 0.2245, a 16% year-on-year increase; the average return on equity for shareholders was 33.8%, down by 3.8 percentage points compared to the same period in 2023.
The bank stated that as of the end of 1H 2024, the company's managed area increased by 5.3% compared to the end of 2023 to 422.7 million square meters. Of this, 46.7% of the new projects came from independent third parties, with a related contract amounting to RMB 0.921 billion. The new managed areas of residential and non-residential projects accounted for 65.1% and 34.9% respectively, with related contract amounts of RMB 0.927 billion and RMB 0.709 billion. As of the end of 1H 2024, the proportion of managed building areas from independent third parties and non-residential projects increased to 40.8% and 30.4%, respectively.
The bank expects the company's EPS for 2024 to be 0.47 yuan per share. Considering the company's growth capabilities and state-owned background, the bank gives the company a moderately premium valuation, giving the company a 2024 dynamic PE ratio of 12-15 times, corresponding to a reasonable value range of 5.68-7.10 yuan per share, or HKD 6.17-7.71 (using an exchange rate of 1 HKD = 0.92 RMB), and gives the company a 'outperform market' rating.
