0418 GMT - China Overseas Land & Investment's liquidity should remain robust as its contracted sales continue to rebound in 2025, Morningstar analyst Jeff Zhang says in a research note. Although the Chinese developer's 2024 bottom line deteriorated, its balanced sheet remained strong, the analyst notes. As over 85% of the land bank acquired by COLI in 2024 was in Tier 1 and Tier 2 cities, these acquisitions could lead to a margin pickup once the projects are delivered, the analyst says. Morningstar expects COLI's faster inventory turnover to reduce its inventory days to below 900 by 2029, down from over 1,100 in 2024. The analyst also notes that COLI's shares remain undervalued and continue to be Morningstar's preferred sector pick due to the high visibility of secular margin improvement. Shares are last down 3.6% at HK$13.40. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
April 01, 2025 00:18 ET (04:18 GMT)
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