The team at OCBC Investment Research has kept its “hold” rating on Yanlord Land Group with a lower fair value estimate of $1.16 from $1.20 due to a weaker contracted sales outlook.
“We factor in Yanlord’s actual FY2021 contracted sales in our model, and also assume a 5% contraction for FY2022,” writes the team in its Jan 14 report.
To be sure, Yanlord’s contracted sales for FY2021 ended December fell 24.0% y-o-y to RMB59.6 billion ($12.63 billion), due to a decline in both contracted gross floor area (GFA) and average selling price (ASP) of 12.7% and 13.0% y-o-y to 1.87 million sqm and RMB31,889 per sqm respectively.
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