ETALON GROUP: 2Q17/1H17 Trading Update: Looking Good Overall

The 2Q17 results look fine. Etalon Group reported a solid 2Q17 trading update yesterday. Its new contract sales increased 10% YoY to RUB11.3bn in 2Q17 driven by a 22% increase in volumes to 122,427 sqm, and a 9% decline in average pricing to RUB92,676/sqm. Prices were under pressure due to changes in the sales mix: an increasing share of commercial real estate and parking plots, while the average apartment price declined 2.3% YoY and QoQ to RUB109,390/sqm. The share of mortgaged purchases jumped...