Investment Rating - The report maintains a "Recommended" investment rating for China Overseas Development (00688.HK) with a target price of HKD 20 [1][8]. Core Views - The company achieved a revenue of HKD 832 billion in the first half of 2025, a year-on-year decrease of 4.3%, and a net profit attributable to ordinary shareholders of HKD 86 billion, down 16.6% year-on-year [1][7]. - The "Good House" system has established a market benchmark, and the company is actively replenishing its land reserves, with an investment intensity of 33.4% in the first half of 2025 [7][8]. - The company continues to focus on first-tier cities, with a sales area of 5.12 million square meters, a decline of 5.9% year-on-year, and a sales amount of HKD 120.2 billion, down 19.0% year-on-year [7][8]. Financial Performance Summary - The company's gross profit margin for the first half of 2025 was 17.4%, with a core net profit margin of 10.6% [7]. - The total land reserve area as of the end of June 2025 was 26.93 million square meters, with an equity area of 23.67 million square meters [7]. - The company reported a commercial operation income of HKD 3.54 billion, with shopping centers and office buildings contributing 81% of the revenue [7]. Debt and Cash Flow Summary - The company's interest-bearing debt decreased to HKD 227.5 billion, down HKD 14.1 billion, with a debt-to-asset ratio of 53.7% [7]. - The average financing cost for the first half of 2025 was 2.9%, and the operating cash flow remained positive [7][8]. - The report forecasts EPS for 2025-2027 to be HKD 1.40, HKD 1.38, and HKD 1.52 respectively, with a projected market capitalization of approximately HKD 218.8 billion [7][8].