Morgan Stanley: Lowered China Overseas (00688) target price to HKD 12.5. Rating remains "in line with the market."

14:54 08/04/2026

The downward adjustment of the target price is mainly due to the inclusion of performance forecasts for 2025 and the introduction of forecasts for 2028, and the downward revision of the core earnings per share forecast for 2026 by 13% and for 2027 by 2%, to reflect the updated delivery and completion schedule for property development projects.

Morgan Stanley released a research report stating that they have updated the risk-return profile for CHINA OVERSEAS (00688), with the target price being revised down from 13.5 Hong Kong dollars to 12.5 Hong Kong dollars, while maintaining a "market perform" rating. The bank explained that the target price was lowered mainly due to incorporating performance forecasts for 2025 and introducing forecasts for 2028, with a 13% decrease in core earnings per share forecast for 2026 and a 2% decrease for 2027, to reflect updated property development project delivery and completion timelines; slowing rental income growth; weaker recovery in property development gross profit margins; and higher than expected sales and administrative expenses.

GEMDALE PPT (00535) total accumulated contract sales for the first three months is approximately 950 million yuan, a decrease of 60.4% year-on-year.

HAITONG INT'L: Gambling gross revenue in March slightly exceeded market expectations, achieving resilient growth.

China Lilang (01234): The retail amount of "Lilanz" products in the first quarter achieved a low double-digit growth year-on-year.

GEMDALE PPT (00535) total accumulated contract sales for the first three months is approximately 950 million yuan, a decrease of 60.4% year-on-year.

HAITONG INT'L: Gambling gross revenue in March slightly exceeded market expectations, achieving resilient growth.

China Lilang (01234): The retail amount of "Lilanz" products in the first quarter achieved a low double-digit growth year-on-year.