China Overseas Land & Investment Ltd. (0688.HK) stock analysis

In our weekly check, China Overseas Land & Investment Ltd. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 5, red flags: 8.

About China Overseas Land & Investment Ltd.

China Overseas Land & Investment Ltd. is a Real Estate company (Real Estate - Development) based in Hong Kong, listed on HKSE as 0688.HK.

What our checks show for 0688.HK

Red flags

• Net debt is 7.8x a year of EBITDA (debt/equity 0.6). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 9 points over 5 years, to 7.6%: the company keeps less of each sale as profit.
• The gross margin fell by 8.8 points, to 14.7%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 0.3% a year.
• Revenue fell 3.5% a year over the last 3 years.
• The dividend takes 289% of profit: little cushion if profit falls.
• The stock has fallen as much as 68% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 2.7%.

Warning signs

• Operating cash flow is only 0.78x net profit: part of the reported profit does not arrive as cash.
• Earnings per share fell 18.3% a year over the last 3 years.
• Net profit fell 18.3% a year over the last 3 years.
• The net margin is only 7.6%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• The price is 10.5 times earnings (P/E), reasonable for its growth.
• A large company: market value $17.39 billion.
• Beta 0.59: the stock usually moves less than the market.
• Actively traded: about 27.3 million shares a day.
• Pay in shares is only 0% of free cash flow.

Similar companies

1113.HK · NRP.JO · EMAAR.AE · 1109.HK · 0016.HK

Questions

What grade does China Overseas Land & Investment Ltd. (0688.HK) have?

In our weekly check, China Overseas Land & Investment Ltd. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 5, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0688.HK stock?

This week's biggest flags for China Overseas Land & Investment Ltd.: High debt, Margins falling, Gross margin falling. In total 13 of 25 checks show a warning or a red flag.

What does China Overseas Land & Investment Ltd. do?

China Overseas Land & Investment Ltd. is a Real Estate company (Real Estate - Development) based in Hong Kong, listed on HKSE as 0688.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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