Changes in Hong Kong stocks | China Overseas Development (00688) rebounded by more than 4%, marginal sales accelerated markedly in the first half of the year, institutions say the company's profit is reaching an inflection point

The Zhitong Finance App learned that China Overseas Development (00688) rebounded by more than 4%. As of press release, it had risen 4.14% to HK$12.82, with a turnover of HK$400 million.

According to a research report, China Overseas Development's revenue for the first half of 2026 increased 17.3% year on year to 97.6 billion yuan, gross margin fell 1.3 percentage points year on year to 16.1%, and core net profit to mother fell 9.7% year on year to 7.93 billion yuan. The results were in line with the forecast. According to the company's announcement, the company's 1H26 full-caliber sales (including Hongyang) rose 11.8% year-on-year to 134.3 billion yuan, maintaining the top position in the industry with equity sales of 123.6 billion yuan. Excluding Hongyang, the contribution ratio of Beijing, Guangzhou, Shenzhen and Hong Kong reached 69% (57% in 2025). The company's YTD equity acquisition amount was -39% to 33.3 billion yuan over the same period last year, of which nearly 80% was contributed in July-August, and the marginal acceleration was significant.

Yamato believes that profits from China's overseas development are reaching an inflection point, and the company's advantages in first-tier cities are driving a virtuous cycle of supplementing high-quality land storage, high-margin sales, and profit recovery. Based on the increase in contract sales and gross margin forecasts for the period, the company's earnings forecast per share for the 2026-2027 fiscal year was raised by 8% to 17%.