SINGAPORE (Nov 17): DBS Vickers Securities is reiterating its “buy” recommendation on China-based real-estate developer Yanlord Land Group with a price target of $1.46, in anticipation of decent 4Q earnings delivery and a higher dividend payout.
This comes despite China facing a recent tightening in its property market, which the group’s management expects may gradually impact the business, but without substantially lowering profitability in all of the cities in which Yanlord operates.
“Despite the recent tightening, we believe margins would be sustainable in FY16/17,” says DBS’s team of analysts in a Tuesday report. The analysts proceed to note how the group has achieved about RMB26.3 billion ($5.43 billion) contracted sales for 10M16, close to its full-year sales target of RMB27 billion – and they believe this will act as a buffer for the near-term impact of China’s market tightening.
