Equity Analysis /
Hong Kong

HK : China Overseas Property Holdings - An SOE with clear five-year targets

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    Contributors
    Steven MAK
    Will Chu
    CGS-CIMB
    26 March 2022
    Published by

    COPH delivered a strong set of FY21 results with core profit up 40% yoy, 9% above our estimate, primarily on strong topline growth. We believe its five-year goals, such as 30% net profit CAGR, should continue to drive COPH’s fast expansion on 3P and growth from VAS. We expect its gross margin to be stable at 17% over FY22-24F on increasing contribution from VAS and carpark trading, which enjoys high GPM. We raise its EPS by 17-21% over FY22-23F and raise our PEG-based TP to HK$11.6 – which offers 31% upside. We upgrade to Add from Hold.