HK Stock Market Move | CHINA OVERSEAS (00688) rises more than 4%, achieving revenue of 37.04 billion yuan in the first quarter. Citigroup expects the company's sales to remain strong in the second quarter.

CHINA OVERSEAS (00688) rose by more than 4%, rising to 4.15% as of press time, reaching 14.57 Hong Kong dollars, with a trading volume of 3.68 billion Hong Kong dollars. On the news front, recently, CHINA OVERSEAS released its first-quarter results for 2026, with revenue of RMB 37.04 billion and operating surplus of RMB 4.11 billion. During the period, the group, together with its associated companies, achieved contract property sales of RMB 51.52 billion, an 11% increase year-on-year, with a corresponding sales area of 1.82 million square meters. The group acquired three new parcels of land in two cities in mainland China and Hong Kong, with a new land reserve equity construction area of 130,000 square meters and an equity land price of RMB 2.13 billion. Citi released a research report stating that it is observing positive catalysts for CHINA OVERSEAS in the next 30 days. The report noted that the company's first-quarter sales were strong this year, and the bank expects strong sales to continue in the second quarter following strong sales in March. Additionally, the company's balance sheet is strong, enabling it to undertake large-scale 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 the expansion of the entire industry chain, rental income continues to increase, and the company has issued a commercial real estate investment trust fund.