Credit Suisse stated in its research report that China Overseas Land and Investment Ltd (HKG:0688) (COLI) launched its long-awaited "land king" project in Shanghai during the weekend. Although the actual transaction price below RMB40,000/square meter was significantly below previous market estimates, the strong sales volume alleviated the brokerage's near-term concerns on COLI sales. The brokerage stated that if the around RMB1 billion Shanghai project sales are recorded in May, combined with strength in other cities such as Xi'an and Ji'nan, it expect COLI's May contracted sales to exceed market expectations.

The brokerage raised its target price for COLI from HK$12.6 to HK$13.8, and upgraded its rating on COLI from Underperform to Neutral. The brokerage also raised its 2013-14 estimated earning per share (EPS) by 6% each to HK$1.58 and HK$1.7 respectively.

Source:chinesestock.org