Profit rise buoys China Overseas

Shares of China Overseas Land & Investment (0688) rose 2.88 percent after operating profit, excluding net foreign exchange gains and losses, jumped 22.2 percent yearly in the first quarter.

But total operating profit of 6.65 billion yuan (HK$7.19 billion) was up by just 0.15 percent. Revenue rose 14.4 percent to 36.5 billion yuan.

Contracted property sales fell 28 percent to 60.21 billion yuan, down from 83.6 billion.

The gross floor area involved was down to 2.02 million square meters from 4.26 million sq m a year ago.

The group noted that "China's real estate industry was continuing its downward trend, was still at an adjustment stage and transformation, with transactions staying sluggish."

It said the group's net gearing and borrowing costs were at "industry-low levels."

China Overseas Land's results came as Country Garden (2007) won approval to push back payments on three yuan bonds, staving off its first local default for the time being.