The analyst rating from UOB Kay Hian for CHINA OVERSEAS (00688.HK) is maintained at "Buy," despite a forecasted decline in the company's 2025 core net profit by 18.1% year-over-year. This decline is attributed to a decrease in the gross profit margin of the property development business and pressures from impairments. The company has shown strong performance in land investments, with a 33% year-over-year increase, particularly in first-tier core cities, which is a positive factor. However, the broker has lowered its earnings forecasts for 2025-2027 by 14.6%, 23.7%, and 27.4%, respectively, and has cut the target price by 9.2% to $15.14 based on net asset value, reflecting an expanded discount to net asset value.
