It was a disappointing 1H20 for Chinese developer Yanlord Land Group following weakened profits. Still, OCBC Investment Research has issued a “buy” call on the counter on the basis of a high contracted sales target for FY2020. The team likes that it is a “high quality” developer with strong exposure to key economic regions in China like the Yangtze River Delta, Bohai Rim and Greater Bay Area.

Listed on the main board of SGX in June 2006, Yanlord is a China-based real estate developer focusing on the development of high-end fully-fitted residential, commercial and integrated property projects in strategic and high-growth Chinese cities. It is currently an established presence in 16 key high-growth cities within the six major economic regions of the PRC. 

Still, 1H20 was below expectations for OCBC Research as gross profit fell 8.6% to RMB3.275 billion ($645.7 million) y-o-y, with gross profit margins falling 35.9% y-o-y as a result of a change in product mix. Worse, profit after tax and minority interests (PATMI) fell 58.5% y-o-y to RMB492.9 million due largely to higher finance costs and SG&A expenses, as well as a larger proportion of non-controlling interests.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook