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Vanke profit increases 25% in first half
Source: Bloomberg News |
August 7, 2012, Tuesday
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Print Edition
CHINA Vanke Co, the country's biggest listed developer, yesterday said first-half profit climbed 25 percent as the company cut prices to boost sales amid government controls.
Net income increased to 3.73 billion yuan (US$585 million), or 0.34 yuan a share, in the six months ended June, from 2.98 billion yuan, or 0.27 yuan, a year earlier, the company said in a statement to the Shenzhen Stock Exchange. Revenue increased 54 percent to 30.72 billion yuan.
"Big companies such as Vanke tend to do better in downturns because they're better at marketing," Jack Gong, a Hong Kong-based property analyst at Jefferies Group Inc, said before the earnings announcement. "The general outlook for the property market is still tightening with some room for fine-tuning of policies."
Chinese developers have been cutting prices to boost sales volumes amid curbs the government has maintained for more than two years to cool the real estate market. They include raising down-payment and mortgage requirements, imposing property taxes for the first time in Shanghai and Chongqing, increasing building of low-cost social housing, and implementing home-purchase restrictions in about 40 cities.
Average home prices for Vanke's homes fell 10.6 percent to 10,380 yuan in the first half from last year, the company said in a separate e-mailed statement.
The developer's contracted sales this year will exceed last year as it will start selling more projects in the fourth quarter, Board Secretary Tan Huajie said in the statement.
The company's contracted sales value, based on bookings of apartments before they are built, fell 1.6 percent to 72.9 billion yuan in the first seven months from a year earlier.
Net income increased to 3.73 billion yuan (US$585 million), or 0.34 yuan a share, in the six months ended June, from 2.98 billion yuan, or 0.27 yuan, a year earlier, the company said in a statement to the Shenzhen Stock Exchange. Revenue increased 54 percent to 30.72 billion yuan.
"Big companies such as Vanke tend to do better in downturns because they're better at marketing," Jack Gong, a Hong Kong-based property analyst at Jefferies Group Inc, said before the earnings announcement. "The general outlook for the property market is still tightening with some room for fine-tuning of policies."
Chinese developers have been cutting prices to boost sales volumes amid curbs the government has maintained for more than two years to cool the real estate market. They include raising down-payment and mortgage requirements, imposing property taxes for the first time in Shanghai and Chongqing, increasing building of low-cost social housing, and implementing home-purchase restrictions in about 40 cities.
Average home prices for Vanke's homes fell 10.6 percent to 10,380 yuan in the first half from last year, the company said in a separate e-mailed statement.
The developer's contracted sales this year will exceed last year as it will start selling more projects in the fourth quarter, Board Secretary Tan Huajie said in the statement.
The company's contracted sales value, based on bookings of apartments before they are built, fell 1.6 percent to 72.9 billion yuan in the first seven months from a year earlier.
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