China Overseas Land & Investment Limited (0688.HK) Bundle
A Brief History of China Overseas Land & Investment Limited
China Overseas Land & Investment Limited (COLI) was established in 1979 and is a leading property developer in China. The company operates as a subsidiary of China State Construction Engineering Corporation (CSCEC), one of the largest construction firms globally. With an extensive portfolio, COLI focuses on residential, commercial, and mixed-use development projects.
COLI was listed on the Hong Kong Stock Exchange in 1992, marking a significant milestone for the company. As of October 2023, the market capitalization of COLI is approximately HKD 344 billion.
Throughout its history, COLI has expanded its footprint beyond mainland China, with projects in Hong Kong, Macau, and various international markets. The company has consistently recorded strong financial performance, underpinned by robust sales and revenue growth.
In the financial year 2022, COLI reported total revenue of HKD 204.2 billion, an increase of 17.6% compared to the previous year. The net profit for the same period was HKD 36.9 billion, showcasing a year-on-year growth of 12.4%.
| Year | Total Revenue (HKD billion) | Net Profit (HKD billion) | Market Capitalization (HKD billion) |
|---|---|---|---|
| 2020 | 165.7 | 31.1 | 315.0 |
| 2021 | 173.7 | 32.8 | 330.0 |
| 2022 | 204.2 | 36.9 | 344.0 |
| 2023 (est.) | 220.0 | 40.0 | 350.0 |
By the end of 2022, the company held assets totaling HKD 1,098 billion, contributing to a strong balance sheet and positioning COLI favorably among its peers in the real estate sector.
COLI’s development strategy emphasizes quality and sustainability, evident from its numerous green building certifications. The company actively seeks to integrate smart technology and sustainable practices into its projects, aligning with China's broader goals regarding environmental sustainability.
In addition to residential and commercial real estate, COLI has diversified its business model to include investment and property management services. As of Q2 2023, the investment property segment has contributed approximately HKD 10.5 billion in rental income annually.
As part of its international expansion, COLI has successfully launched several projects outside China, particularly in Southeast Asia. The company is committed to expanding its global footprint, aiming to generate around 20% of its revenue from international projects by 2025.
Overall, China Overseas Land & Investment Limited has established itself as a major player in the real estate development industry, consistently demonstrating resilience and growth in a challenging market environment.
A Who Owns China Overseas Land & Investment Limited
China Overseas Land & Investment Limited (COLI) is a prominent player in Hong Kong’s property market, and it is a subsidiary of China State Construction Engineering Corporation (CSCEC), one of the largest construction companies globally. As of the end of 2022, CSCEC held a substantial share of approximately 55.34% of COLI’s total shares.
COLI operates primarily in the development of residential and commercial properties, and its ownership structure includes a mix of institutional and individual shareholders. The next largest shareholder is the Government of the Hong Kong Special Administrative Region, which owns around 4.21% of the company.
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| China State Construction Engineering Corporation | 55.34% | Institutional |
| Government of the Hong Kong Special Administrative Region | 4.21% | Government Entity |
| BlackRock, Inc. | 4.07% | Institutional |
| China Life Insurance Company | 2.99% | Institutional |
| HSBC Holdings plc | 2.84% | Institutional |
| Public and Other Shareholders | 26.35% | Individual and Others |
As of the latest financial data from the company’s annual report for 2022, COLI reported revenues of approximately HKD 360.6 billion (around USD 46.1 billion), with a net profit of HKD 41.1 billion (around USD 5.3 billion), reflecting strong operational performance amid market challenges.
The stock performance of COLI on the Hong Kong Stock Exchange (HKEx) has been notable. As of October 2023, COLI's share price is approximately HKD 18.20, with a market capitalization exceeding HKD 270 billion (around USD 34.6 billion).
In terms of dividends, COLI has maintained a strong payout ratio, with a dividend yield of approximately 4.2%, making it an attractive option for dividend-seeking investors.
COLI's governance structure is robust, with a board of directors comprising experienced professionals from various backgrounds, ensuring effective oversight and strategic direction. The company also emphasizes sustainability in its operations and has outlined ambitious targets for reducing carbon emissions and increasing energy efficiency in its developments.
China Overseas Land & Investment Limited Mission Statement
China Overseas Land & Investment Limited (COLI) aims to be a pioneer in the real estate sector, emphasizing innovation, sustainability, and customer satisfaction. The company focuses on developing quality residential and commercial properties, aiming to enhance urban living standards in China.
COLI’s mission is encapsulated in its commitment to creating value for stakeholders through high-quality project development, meticulous operational management, and a dedication to environmental sustainability. It strives to achieve a balanced growth model that integrates economic performance with responsible corporate governance.
As of the latest financial reports, COLI reported a revenue of approximately HKD 115.79 billion for the year ended December 31, 2022, reflecting a year-on-year increase of 3.9%. The total assets of the company stood at HKD 385.12 billion, and it reported a net profit of HKD 27.21 billion.
The company upholds its mission statement by focusing on several strategic pillars:
- Quality Development: The company’s residential developments have received numerous awards, emphasizing its commitment to quality.
- Sustainable Practices: COLI aims to implement environmental-friendly practices across its projects, targeting a 40% reduction in carbon emissions by 2030.
- Customer-Centric Approach: Customer satisfaction surveys show a satisfaction rate of 88% among homeowners.
| Financial Metric | 2022 Amount | 2021 Amount | Year-on-Year Change |
|---|---|---|---|
| Revenue | HKD 115.79 billion | HKD 111.46 billion | 3.9% |
| Net Profit | HKD 27.21 billion | HKD 21.34 billion | 27.6% |
| Total Assets | HKD 385.12 billion | HKD 359.77 billion | 7.0% |
| Return on Equity (ROE) | 15.4% | 13.1% | 2.3% |
COLI's commitment to innovation is reflected in its investment in technology, including smart home systems and advanced building materials. Recent initiatives include launching 20 new projects, with a pre-sales target of HKD 90 billion for 2023.
Furthermore, the corporate social responsibility (CSR) aspect of COLI's mission supports community development, with over HKD 500 million invested in local initiatives in 2022. This investment underscores the company’s belief in contributing positively to society while fostering economic growth.
In summary, China Overseas Land & Investment Limited’s mission statement encompasses quality, sustainability, and community engagement, driving its strategy to be a leader in the real estate sector in Asia. With a robust financial foundation, the company continues to push boundaries while consistently delivering value to its shareholders, customers, and the broader community.
How China Overseas Land & Investment Limited Works
China Overseas Land & Investment Limited (COLI) is a leading property developer in China, primarily engaged in the development and sale of residential and commercial properties. Established in 1979, COLI operates as a wholly owned subsidiary of China State Construction Engineering Corporation, one of the largest construction companies globally.
In 2022, COLI reported total revenue of approximately RMB 290.35 billion (about USD 45.58 billion), marking an increase compared to RMB 265.68 billion in 2021. The company's net profit for 2022 stood at roughly RMB 38.27 billion, up from RMB 35.27 billion the previous year.
COLI’s operations are classified into several segments:
- Residential Property Development
- Commercial Property Development
- Property Investment
- Construction and Project Management
As of December 2022, COLI had a land bank of approximately 78.9 million square meters, located in key cities across China, including Beijing, Shanghai, and Shenzhen. The company focuses on urban areas, targeting high-demand regions which support their revenue growth strategy.
| Segment | Revenue (RMB billion) | Percentage of Total Revenue (%) |
|---|---|---|
| Residential Property Development | 210.50 | 72.5 |
| Commercial Property Development | 45.00 | 15.5 |
| Property Investment | 20.00 | 6.9 |
| Construction and Project Management | 14.85 | 5.1 |
COLI adopts a comprehensive business model that includes land acquisitions, project design, construction management, and sales and marketing. The company’s strong brand reputation and financial stability enable it to secure favorable financing terms and engage in large-scale projects.
As of mid-2023, COLI's stock performance has shown resilience in a challenging market environment. The share price has fluctuated between HKD 18.00 and HKD 25.00, reflecting investor confidence amid fluctuating market conditions and government policies affecting the real estate sector.
In terms of market capitalization, as of October 2023, COLI's market cap is approximately HKD 203.55 billion (around USD 26.02 billion), positioning it among the top property developers in Hong Kong’s stock market.
COLI also emphasizes sustainability and green building practices in its development projects. The company has committed to achieving up to 30% of its projects being certified with green building standards by 2025, aligning with China's broader goals for reducing carbon emissions and promoting environmental sustainability.
In summary, China Overseas Land & Investment Limited leverages its substantial land bank, strong financial health, and integrated business model to drive growth in China’s competitive real estate market, maintaining relevance in a fluctuating economy.
How China Overseas Land & Investment Limited Makes Money
China Overseas Land & Investment Limited (COLI) is a leading property developer in China, generating revenue primarily through its real estate operations. The company operates in various segments, including residential, commercial, and investment properties. In 2022, COLI reported revenue of approximately RMB 257.6 billion (around USD 38.4 billion), reflecting a strong position in the competitive real estate market.
Revenue Sources
- Residential Development: This is the biggest revenue driver for COLI, contributing roughly 90% of total revenue. In 2022, the company delivered approximately 60,000 residential units.
- Commercial Properties: This segment, including office buildings and retail spaces, accounted for about 7% of total revenue. The leasing of commercial properties generated approximately RMB 18 billion in 2022.
- Property Management: Property management services contributed to 3% of total revenue, with an income of approximately RMB 6.5 billion in 2022.
Financial Performance
In 2022, COLI experienced a 2.5% increase in net profit year-on-year, reaching approximately RMB 38.1 billion (around USD 5.7 billion). This growth can be attributed to strategic land acquisitions and effective project management.
Latest Financial Metrics
| Financial Metric | 2021 | 2022 |
|---|---|---|
| Total Revenue (RMB billion) | 251.69 | 257.6 |
| Net Profit (RMB billion) | 37.2 | 38.1 |
| Earnings Per Share (RMB) | 3.04 | 3.10 |
| Gross Margin (%) | 26.5 | 25.8 |
| Return on Equity (%) | 15.4 | 15.8 |
Market Trends and Strategic Advantages
COLI holds a competitive edge through its extensive land bank, with over 200 million square meters of land in various development stages as of October 2023. The company focuses on Tier 1 and Tier 2 cities, where demand for housing remains robust. Moreover, COLI invests in sustainable building practices, enhancing its reputation and marketability.
Competitive Landscape
In 2022, COLI ranked among the top five real estate developers in China by sales volume, competing with companies like Country Garden and China Vanke. The company’s ability to maintain a steady pipeline of projects has allowed it to outperform many peers amidst market volatility.
Future Outlook
Looking ahead, COLI aims to leverage digital transformation and smart technology in property management and development, which is expected to increase operational efficiency. The company has projected sales of around RMB 280 billion for 2023, driven by ongoing demand for residential properties.
China Overseas Land & Investment Limited (0688.HK) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.