CITIC: CHINA OVERSEAS (00688) achieved core net profit in the first half of the year as expected, raised earnings forecast, and reiterated "outperform the industry."

China International Capital Corporation (CICC) released a research report stating that, in light of market sentiment and project settlement progress, it has raised the profit forecasts for CHINA OVERSEAS (00688) for 2026 and 2027 by 3% and 5%, respectively, to RMB 11.9 billion and RMB 11.8 billion, reiterating the "Outperform Industry" rating. China Overseas' sales and revenue recognition have significantly accelerated, and attention should be paid to the pace of land reserve expansion in the second half of the year. Its revenue for the first half of the year increased by 17.3% year-on-year to RMB 97.6 billion, while the gross profit margin decreased by 1.3 percentage points year-on-year to 16.1%. Core net profit attributable to shareholders fell by 9.7% year-on-year to RMB 7.93 billion, which meets the bank's expectations. The company declared an interim dividend of HKD 0.23 per share, reflecting a payout ratio of 37% and an interim dividend yield of 1.65%.