China Overseas Grand Oceans (COGO) Delivers 1H26 Profit Growth on Strong Contracted Sales and Tight Cost Control

Bulletin Express
Aug 24

• Contracted Sales Accelerate China Overseas Grand Oceans (COGO) reported contracted sales of RMB19.14 billion for the six months ended 30 June 2026, up 15.2% year-on-year, on 1.65 million sq m of contracted area (+11.9%). Average selling price edged up 3.9% to RMB12,725 per sq m.

• Revenue Softens, Margin Expands Group revenue slipped 2.7% to RMB14.14 billion, reflecting a cautious market backdrop. However, gross profit jumped 23.9% to RMB1.67 billion; gross margin widened to 11.8% (1H25: 9.3%) on improved project mix and disciplined pricing.

• Earnings Rebound Profit attributable to shareholders rose 15.4% to RMB328 million, lifting basic EPS to RMB0.092. Operating profit advanced 63.3% to RMB1.02 billion as selling and administrative expenses were trimmed to below 4% and 2% of sales respectively.

• Solid Balance Sheet and Liquidity – Operating cash inflow reached RMB5.97 billion, marking five consecutive years of positive first-half operating cash flow. – Cash and bank balances climbed to RMB31.00 billion, equal to 26.6% of total assets. – Net gearing improved to 18.5% (end-2025: 31.7%), while the cash-to-short-term-debt ratio strengthened to 3.6x. – Average borrowing cost stayed low at 3.3%, and none of the industry’s “three red-line” thresholds were breached.

• Targeted Land Replenishment The Group acquired four projects in Taizhou, Yinchuan and Tangshan for RMB2.08 billion, adding 0.48 million sq m of GFA. Total land bank stood at 11.43 million sq m, with 9.80 million sq m attributable to the Group across 31 cities.

• Segment Performance – Property Development generated RMB13.88 billion revenue (-3.0%) with an 11.5% gross margin (1H25: 8.6%); segment profit jumped to RMB805 million (1H25: RMB449 million). – Commercial Property Operations delivered RMB261.61 million revenue (+11.0%); leased area expanded 24.6% to 598,000 sq m, supporting segment profit of RMB66.90 million.

• Shareholder Returns The Board declared an interim dividend of HK1.5 cents per share (1H25: HK1.0 cent), payable on 16 October 2026 to shareholders on record as of 21 September 2026.

• Outlook Highlights Management expects constrained new-supply and “Good Housing” initiatives to underpin sales in core mid-tier cities, while financial prudence and selective land banking remain strategic priorities for sustainable growth.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10