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UBS Lifts CHINA OVERSEAS (00688.HK) TP to $15, Rating Neutral
2025-06-30 14:46:23
UBS released a research report lifting its target price from $12.5 to $15, with rating at Neutral, considering CHINA OVERSEAS (00688.HK)'s launch of a retail property CREIT.

The target price is based on a projected 2026 PE ratio of 10.7x (previously 8.5x), reflecting the value released by the CREIT spin-off and new financing channel, which are not yet reflected in earnings.

CHINA OVERSEAS' estimated earnings for 2025-2027 remains unchanged, UBS added. The broker expected 1H25 core earnings to decline YoY due to a high profit margin base in the same period of 2024.

UBS maintained its 2025-2026 earnings forecasts for CHINA OVERSEAS, assuming flat contract sales and net profit, with a gross profit margin of 16%.
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