BEIJING, September 1, 2011 /PRNewswire/ --
As the representative enterprise of high-turnover development mode, Evergrande (03333.HK) exhibits eye-catching data indicators, especially core indicators of main business income, net profit, core business profit, sales area and land reserve, which rank first among Chinese real estate enterprises. An original report from Sina Leju follows:
In the first half-year, Evergrande achieved business volume of 32.06 billion yuan, an increase of 57.4% on a year-on-year basis; net profit of 5.82 billion yuan, an increase of 132.8% on a year-on-year basis, ranking first among all the Chinese listed real estate enterprises; profit attributable to shareholders of 5.7 billion yuan, a large increase of 144.6% on a year-on-year basis; and core business profit of 4.81 billion yuan, an increase of 147.9% on a year-on-year basis.
According to market participants, Evergrande's rapid land acquisition, development and sale is key in maintaining high-speed growth. As of June 30, the new land reserve of Evergrande this year is 48.97 million square meters, with total land reserve up to 135 million square meters, ranking first among Chinese real estate enterprises again, with an average land cost of 617 yuan per square meter. Evergrande has had 181 large-scale residential projects in 100 cities in China.
Evergrande's standardized operations require that all projects be completed within half a year from land acquisition to the opening. In the first half of 2011, Evergrande launched 33 new projects to the market, with a total of 89 projects on sale. Also, Evergrande achieved large increases in sales area and sales volume in the first half-year. Sales area amounted to 6.117 million square meters, an increase of 83.2% on a year-on-year basis; sales volume amounted to 42.32 billion yuan, an increase of 101.7% on a year-on-year basis.
Based on profitable semi-annual achievements and wide sale and profitability prospects, Evergrande's stock price boosted 4.32% to 4.82 yuan the day after the sales performance release, with the increase amount leading Chinese mainland real estate stocks. Many international investment banks increased the target price of Evergrande's stock. The target price offered by Goldman Sachs is HKD 8.5; Deutsche Bank is HKD 8.3; Bank of America, Merrill Lynch and Citibank respectively are HKD 7.5.
SOURCE Sina Leju