GEMDALE CORP (CN), a company active in the Real Estate Holding & Development industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date March 29, 2022, the closing price was CNY 13.60 a...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
The top 100 developers’ Feb 20 contracted sales fell 38% yoy with 80% reporting negative yoy growth for both year to date and FEB20 contracted sales. Developers have been shifting their focus to online sales platforms with residential lockdowns in place. Cash flow pressure has dampened land-buying sentiments and postponed land auctions. More policy relaxation in supply and demand would ease developers’ liquidity pressure, stimulate property sales and promote economic recovery. Maintain OVERW...
Gemdale reported an operating income of Rmb20.05b in 3Q19 (8.95 yoy and 76.37% qoq), in line with our expectation. Revenue growth was slowed down by a decrease in carry-over and investment returns grew on the back of more JV projects. However, cash collection rose and some projects’ destocking rates increased, which will reduce the pressure on capital. Maintain HOLD with a target price of Rmb13.08. Entry price: Rmb11.89.
Low-priced transactions in the land market have been occurring more frequently since Sep 19, and the land market is getting gloomier. Since 3Q19, financing has become tighter, and it is more difficult for developers to achieve rapid business expansion. Thus, overall, developers are turning more cautious in land acquisition, which explains the price and volume declines in the land market. Maintain MARKET WEIGHT.
To ensure sufficient cash flow, accelerating cash collection has become the only goal of property developers against the backdrop of financing restrictions. Based on the last few years, the fourth quarter is the peak period of supply from developers, and also a key period for them to achieve full-year targets. For October, we expect discount promotions to remain a key strategy of developers. Maintain MARKET WEIGHT.
The LPR is an important measure to reduce the real interest rate and will improve the credit environment as well as alleviate the pressure from tightening financing caused by various policies in recent months. But in the short term, developers will have difficulty securing funds to support their financing and mortgages. However, in the long run, mortgage rates will be more market-oriented. Maintain MARKET WEIGHT.
Although most developers still saw a mom rise in their Aug 19 sales performance, the market is not as good as the data implies. The increase in sales performance was caused by developers increasing their supply in the second half of this year, but the overall sell-through rate of the projects was not good. Also, compared with the same period last year, developers’ overall profit growth slowed down significantly in 1H19. Maintain MARKET WEIGHT.
Since revenue of property developers has a lag of 2-3 years from pre-sales to carryover, most of the project settlements in 1H19 were sold in 2016-17. Therefore, earnings of property developers in 1H19 were still eye-catching. However, with the further tightening of policies and financing in the property sector, pressure on sales and investment will increase and impact the cash flow of developers. Maintain MARKET WEIGHT.
Gemdale reported a net profit of Rmb2.92b in 1H19 (+12.3% yoy), beating our expectation. Revenue growth was fuelled by an increase in carry-over and investment returns grew on the back of more JV projects. However, cash collection declined and some projects’ destocking rates fell, which will exert pressure on capital. Maintain HOLD with a target price of Rmb13.08. Entry price: Rmb11.89.
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