Company Coverage
China Overseas Property Holdings (2669 HK): 1H26: Earnings Fall 9% On Margin Compression; Interim Payout Lifted To 40%
BUY (Maintained)
Current price:
Target price:
Upside:
HK$3.365
HK$4.20
+24.8%
Analyst
Analyst
Highlights
- 1H26 attributable net profit fell 9.0% yoy to Rmb701m, with revenue up 4.5% yoy but group gross margin down 2.0ppt yoy to 14.9%.
- GFA under management rose 3.7% hoh to 495.4m sqm and third-party share reached 43.3%, but property management services margin fell to 13.0% (1H25: 15.4%).
- Receivable turnover lengthened by nine days yoy to 82.5 days; interim DPS rose to HK$0.10, implying a payout ratio of 40.3%. Maintain BUY with an unchanged target price of HK$4.20.
Analysis
1H26 results were in line with our expectation. China Overseas Property Holdings' (COPH) attributable net profit fell 9.0% yoy to Rmb701m, with: a) revenue growth of 4.5% yoy to Rmb7,485m; b) a group gross profit margin of 14.9%, down 2.0ppt yoy; c) an SG&A to revenue ratio of 2.4% (1H25: 2.1%); and d) a cash position of Rmb5.73b, down 8.6% hoh. The company announced an interim DPS of HK$0.10 (1H25: an interim DPS of HK$0.09 plus a special DPS of HK$0.01 for its 10th listing anniversary), taking the interim payout ratio to 40.3% (1H25: 39.0% including the special dividend).
Highlights
- 1H26 attributable net profit fell 9.0% yoy to Rmb701m, with revenue up 4.5% yoy but group gross margin down 2.0ppt yoy to 14.9%.
- GFA under management rose 3.7% hoh to 495.4m sqm and third-party share reached 43.3%, but property management services margin fell to 13.0% (1H25: 15.4%).
- Receivable turnover lengthened by nine days yoy to 82.5 days; interim DPS rose to HK$0.10, implying a payout ratio of 40.3%. Maintain BUY with an unchanged target price of HK$4.20.
Analysis
1H26 results were in line with our expectation. China Overseas Property Holdings' (COPH) attributable net profit fell 9.0% yoy to Rmb701m, with: a) revenue growth of 4.5% yoy to Rmb7,485m; b) a group gross profit margin of 14.9%, down 2.0ppt yoy; c) an SG&A to revenue ratio of 2.4% (1H25: 2.1%); and d) a cash position of Rmb5.73b, down 8.6% hoh. The company announced an interim DPS of HK$0.10 (1H25: an interim DPS of HK$0.09 plus a special DPS of HK$0.01 for its 10th listing anniversary), taking the interim payout ratio to 40.3% (1H25: 39.0% including the special dividend).
BUY (Maintained)
Current price:
Target price:
Upside:
HK$3.365
HK$4.20
+24.8%
Analyst
Analyst
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