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Developer doubles first-half profit
By Cao Qian |
July 27, 2010, Tuesday
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Online Edition
Online Edition
CHINA Merchants Property Development Co, one of the country's four major publicly listed developers, said today net profit more than doubled in the first half of this year amid increased sales.
Net income during the six-month period jumped 116 percent to 1.05 billion yuan (US$155 million), or 0.61 yuan per share, while revenue soared 143 percent to 6.98 billion yuan, the company told the Shenzhen Stock Exchange today.
A significant increase in property sales during the first half of 2010 compared to the same period a year earlier contributed substantial growth in net profit, according to the developer's half-year report.
Between January and June, China Merchants Property launched 21 projects in 11 cities with combined sales by area reaching 287,500 square meters and contract sales by value totaling 4.23 billion yuan.
"The company's first-half sales (by value) only accounted for 35 percent of our earlier forecast for 2010, compared to the average 54 percent level reached by its major counterparts," Sun Xianbing, a researcher with Beijing Gao Hua Securities Co Ltd, wrote in an analysis today. "Therefore, how to improve its second-half sales would be of great importance to the company's whole-year performance."
Unlike some of its counterparts, China Merchants Property currently focuses on first-tier cities such as Shenzhen and Shanghai, where property sales have grown at a slower pace compared to second- and third-tier cities, Sun wrote.
During the first six months, the company began nine new projects with a combined gross floor area space of 670,000 square meters. The developer's land bank, meanwhile, has exceeded 10 million square meters after some 460,000 square meters' plots were added during the first half.
China Merchants Property in May shelved a private placement plan worth up to 5 billion yuan because of a fall in its share price. Property stocks plunged significantly in China amid tightening policies introduced by the central government to rein in speculation in the housing market.
The company's shares dipped 0.54 percent to 18.42 yuan today.
Net income during the six-month period jumped 116 percent to 1.05 billion yuan (US$155 million), or 0.61 yuan per share, while revenue soared 143 percent to 6.98 billion yuan, the company told the Shenzhen Stock Exchange today.
A significant increase in property sales during the first half of 2010 compared to the same period a year earlier contributed substantial growth in net profit, according to the developer's half-year report.
Between January and June, China Merchants Property launched 21 projects in 11 cities with combined sales by area reaching 287,500 square meters and contract sales by value totaling 4.23 billion yuan.
"The company's first-half sales (by value) only accounted for 35 percent of our earlier forecast for 2010, compared to the average 54 percent level reached by its major counterparts," Sun Xianbing, a researcher with Beijing Gao Hua Securities Co Ltd, wrote in an analysis today. "Therefore, how to improve its second-half sales would be of great importance to the company's whole-year performance."
Unlike some of its counterparts, China Merchants Property currently focuses on first-tier cities such as Shenzhen and Shanghai, where property sales have grown at a slower pace compared to second- and third-tier cities, Sun wrote.
During the first six months, the company began nine new projects with a combined gross floor area space of 670,000 square meters. The developer's land bank, meanwhile, has exceeded 10 million square meters after some 460,000 square meters' plots were added during the first half.
China Merchants Property in May shelved a private placement plan worth up to 5 billion yuan because of a fall in its share price. Property stocks plunged significantly in China amid tightening policies introduced by the central government to rein in speculation in the housing market.
The company's shares dipped 0.54 percent to 18.42 yuan today.
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