A director at China Fortune Land Development Co Ltd bought 786,000 shares at 2.370CNY and the significance rating of the trade was 51/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over th...
The independent financial analyst theScreener just lowered the general evaluation of CHINA FORTUNE LD.DEV.'A' (CN), active in the Real Estate Holding & Development industry. As regards its fundamental valuation, the title still shows 2 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Slightly Negative. As of the analysis date F...
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...
Affected by the epidemic, sales plans of developers have been delayed, while the pace of cash collection is expected to slow down. But the relaxation in monetary policy would provide some relief to the liquidity pressures of developers. Also, since 4Q19, the cases of failed land auctions have been growing steadily while land premium rates have been on a downtrend. Therefore, the frequent introduction of local policies is targeted at encouraging developers to acquire land. Hence, we maintain OVER...
GREATER CHINA Economics Economic Activity: 3Q19: GDP growth records a new low as economic activity indicators broadly retreat. Sector Automobile: China to further open up EV market to foreign OEMs. Results China Fortune Land (600340 CH/HOLD/Rmb28.03/Target: Rmb30.38): 3Q19: Cash collection jumps, financing leverage under control; upgrade to HOLD. INDONESIA Results Unilever Indonesia (UNVR IJ/HOLD/Rp43,125/Target: Rp43,800): 9M19: Results in line; upgrade to HOLD as share price has dropped. MAL...
China Fortune Land reported 3Q19 net profit of Rmb9.7b (+24.4% yoy), beating expectations. The higher property sales volume boosted its cash flow and debt-paying ability. The increase in the cash collection rate reduces the company’s liquidity and debt risk. The company’s operational and financial indicators are recovering gradually. Upgrade to HOLD with target price of Rmb30.38. Entry price: Rmb25.23.
KEY HIGHLIGHTS Economics Economic Activity 3Q19: GDP growth records a new low as economic activity indicators broadly retreat. Sector Automobile China to further open up EV market to foreign OEMs. Results China Fortune Land (600340 CH/HOLD/Rmb28.03/Target: Rmb30.38) 3Q19: Cash collection jumps, financing leverage under control; upgrade to HOLD.
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.
China Fortune Land reported net profit of Rmb8.48b in 1H19 (+22.4% yoy), in line with expectations. The decline in the sales volume of the real estate business has affected its cash flow and debt paying ability. At the same time, the continuous increase in account receivables has led to slow cash collection. Downgrade to SELL with a lower target price of Rmb23.34.
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