<P>中银国际-中国海外发展-年报简评 English</P>
<P> 22 March 2007 (Thursday) 1页</P>
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<P>Ken YEUNG, CFA<BR>China Overseas Land &amp; Investment (COLI, 0688.HK/HK$8.94, OP)<BR>has reported that its 2006 net profit grew 55% YoY to HK$2.37bn, 12%<BR>higher than our forecast of HK$2.11bn (revised after strict enforcement<BR>of land appreciation tax [LAT] in February 2007). Stripping out the<BR>effect of a net increase in fair value of investment properties<BR>amounting to HK$175m in 2006, its core net profit was 4% higher than<BR>our forecast. COLI’s 2006 turnover grew 57% YoY to HK10.9bn, equal<BR>to our estimate of HK$10.9bn. The company’s area sold increased 48%<BR>YoY to 1.67m m2 in 2006. Despite charging the full LAT in its accounts,<BR>COLI’s gross profit margin for projects increased to 31.5% in 2006 from<BR>29.7% in 2005. Year to date in 2007, the company has acquired three<BR>sites, to adding 1.1m m2 to its land bank to take it up to 16m</P>