SEHK:688Real Estate
China Overseas Land & Investment (SEHK:688) Stock Faces Profit Squeeze Despite Revenue Growth
China Overseas Land & Investment came into this earnings season with a stock that had slipped about 9.3% over the last three months, yet it now trades around HK$14.17 and at roughly 12x P/E. The market is still treating it as a cautious value call in a stressed China property sector, but the latest half year numbers highlight pressure where it hurts most. Net profit margin over the past year is about 6.1% compared with 7.7% a year ago, so today’s headline is a margin squeeze story rather than...