Citigroup: Initiates positive catalyst watch on CHINA OVERSEAS (00688) with strong sales expected to continue in the next quarter

Citibank released a research report stating that it is observing positive catalyst factors for CHINA OVERSEAS (00688) in the next 30 days, as the company's land acquisition amount last year was the highest in the industry, investing 92.4 billion RMB in 15 cities. The bank has set a target price of 14.2 Hong Kong dollars and a "buy" rating. The company's sales in the first quarter of this year were strong, reaching 51.1 billion RMB, a year-on-year increase of 11%. The bank expects sales to continue to be strong in the second quarter following strong sales in March. In addition, the company's balance sheet is strong, enabling it to undertake large integrated projects in core cities. Furthermore, the company's cost management is effective, with sales and management expense ratios and financing costs at industry-low levels. With expansion across the entire industry chain, rental income continues to increase, and the company has already issued a commercial real estate investment trust fund.