Evergrande Yingxi’s core profit doubled
China Evergrande (03333) issued a profit alert. It is expected that the profit attributable to shareholders will increase by 3-4 times last year. The net profit of core business is expected to double, and the net profit of core business is expected to be about twice that of last year. The increase was mainly due to the company’s improvement in product quality last year, increased value-added products, reduced costs, increased floor space, and redemption of perpetual debt.
Last month, China Overseas sold 10% of its sales amount last month
Evergrande had a profit of RMB 5,091 million in 2016, and its core business had a net profit of RMB 20.81 billion. Based on this, it estimated its net profit for its core business in 2017 to be around RMB 41.6 billion.
In addition, China Overseas Land Development (00688) announced that cumulative contracted property sales in the first two months of the year totaled approximately HK$42.217 billion, up 21.55% year-on-year. In February alone, the contracted property sales amounted to approximately HK$16,493 million, an increase of 9.98% year-on-year. As of the end of last month, sales of confirmed shopping products were approximately RMB 26.492 billion and are expected to be converted into contracted property sales in the coming months.
China Overseas acquired a total of 11 plots in February, with a total floor area of approximately 2.731 million square meters, and a land transfer fee of approximately RMB 14.736 billion, of which 3 sites will be developed in a cooperative mode.