Zhi Tong Cai Jing·2025-09-15 06:12Core Viewpoint - The report from Huachuang Securities maintains a "recommended" rating for China Overseas Development (00688), projecting EPS for 2025-2027 to be 1.40, 1.38, and 1.52 CNY respectively, with a target market value of approximately 218.8 billion HKD and a corresponding stock price of 20 HKD based on a 13x PE ratio for 2025 [1] Group 1: Sales Performance - In the first half of 2025, the company achieved a sales area of 5.12 million square meters, a year-on-year decline of 5.9%, with a sales amount of 120.2 billion CNY, down 19.0%, and an average contract sales price of 23,467 CNY per square meter, a decrease of 14.0% [1] - The company continues to focus on first-tier cities, launching the "China Overseas Good House Living OS System" with initial projects in Beijing and Shanghai [1] - The company recorded a total of 556.4 billion CNY in contract sales in major cities, with Beijing contributing 304.5 billion CNY [1] Group 2: Land Acquisition and Investment - The company actively replenished its land reserves, acquiring 17 new plots of land in the first half of 2025, with an equity purchase amount of 40.1 billion CNY and an investment intensity of approximately 33.4% [1] - By the end of July 2025, the company had acquired a total of 22 plots of land with an equity purchase amount of 55 billion CNY, with 86% of acquisitions in first-tier and strong second-tier cities [1] - The total land reserve area reached 26.93 million square meters, with an equity area of 23.67 million square meters by mid-2025 [1] Group 3: Commercial Operations - The company reported commercial operation revenue of 3.54 billion CNY in the first half of the year, remaining flat year-on-year, with revenue from first-tier city projects increasing to 47% [2] - The revenue structure showed that shopping centers and office buildings contributed 33% and 48% respectively, with shopping center occupancy rates at 96.2% and sales and foot traffic increasing by 6.7% and 11.0% respectively [2] - The operating profit margin for shopping centers reached 56.8%, while the office buildings signed a new lease area of 510,000 square meters, with a renewal rate increase of 16 percentage points to 77% [2] Group 4: Debt and Financial Health - The company's interest-bearing debt decreased to 227.5 billion CNY, down 14.1 billion CNY, with an asset-liability ratio of 53.7% [3] - Cash on hand reached 109 billion CNY, accounting for 12.1% of total assets, with positive operating cash flow [3] - The average financing cost for the first half of 2025 was 2.9%, with distribution and administrative expenses making up about 3.8% of revenue, and administrative expenses decreasing by 16.9% year-on-year [3]