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Property firm widens focus

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SCMP Reporter

CHINA Overseas Land & Investment develops, invests in and manages property in Hong Kong, Shenzhen, Guangzhou and Shanghai.

South China Brokerage has put a buy on the stock, saying the company is a conglomerate in the making.

It said China Overseas' venture into infrastructure in China called for a revaluation of the company as a diversified conglomerate instead of a pure property developer.

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An excellent relationship with its parent company and the Chinese Government would ensure a continuous flow of construction projects and prime sites for property development.

China Overseas has been able to sustain a healthy 14 per cent profit margin for its construction operations, compared with an industry average of 8 per cent to 10 per cent.

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The company has also been able to sell its properties at a premium and in a relatively short period. It sold 109 of 120 units at Glorious City Garden in Guangzhou in one day.

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