China Overseas looks into expansion on rosy profit

China Overseas Land & Investment Ltd<688>, a Hong Kong-based developer, on Thursday posted its net profit for 2007 jumped 76.3% to HK$4.18 billion, boosted by sales in the mainland.

Sales saw a 52% surge to HK$16.63 billion, in which, mainland market contributed 74% of the total. Last year, the company sold properties with floor area of 2.15 million sq meters worth of HK$21.83 billion.

The Hong Kong-listed company expects net profit to climb 20% in 2008 as it spends HK$4.5 billion to expand its land bank by about a quarter. It plans to start construction of 86 projects this year with an area of 9 million sq meters.

Elsewhere, its plan to return to A-share market has been lain over as its parent China State Construction Engineering Corp is now preparing a whole listing in mainland market.

H-shares of China Overseas jumped nearly 5.02% on Friday on its forecast-beating earnings.