<P><FONT size=6>CS：China Overseas Land &amp; Investment</FONT></P>
<P><FONT size=6>0213 4页 英文</FONT></P>

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<P><FONT size=5>● We attended COLI’s analyst luncheon and got an update on its<BR>latest development and LAT provisions.<BR>● COLI should have already made LAT provisions of around<BR>HK$560 mn in 2006, which is in-line with our expectations. It is<BR>estimated that LAT provisions for 2007E and 2008E will amount to<BR>HK$900 mn and HK$800 mn, respectively.<BR>● Property sales remain solid with close to 35% of 2007E<BR>completions have been presold. COLI acquired 2.5 mn sqm GFA<BR>during 4Q06, pushing its land bank reserve to 16.3 mn sqm GFA.<BR>● Marking all its assets to market, including the newly acquired<BR>sites, we are revising up our NAV estimate by 8% to HK$6.88/sh.<BR>Our TP is also revised up to HK$7.8, which is set at par to our 12-<BR>month forward NAV. With the stock trading at 9% premium to our<BR>12-month forward NAV and 18x 07E PER, valuation is not cheap.<BR>Yet, the stock is not overly stretched as it is still trading at 23%<BR>discount to our intrinsic value. We maintain our NEUTRAL rating.</FONT></P>