By Benny Kung
Recasts; adds details from earnings conference
HONG KONG (Mar 13) -- Hong Kong-listed Central China Real Estate on Tuesday said it expects contracted sales to grow at least 48% in 2018, as it seeks to commence work on and complete a slew of new projects this year.
The Henan province-based property developer expects to record year-over-year sales growth of about 50% over the next two to three years, Chief Executive Officer Yuan Xujun said at a press conference in Hong Kong on Tuesday.
For 2018, Central China Real Estate expects contracted sales to jump 48% on-year to 45 billion yuan ($7.1 billion), according to its earnings presentation. The company plans to start construction of 63 projects with a ground floor area of 10.04 million square meters this year, up 71% from a year ago. It also expects to launch 79 projects and complete 47 projects.
Late Monday, the company reported a 19.8% decrease in February's contracted sales to 1.37 billion yuan. Sales by area decreased to 220,481 square meters, down 30% on year. The Chinese New Year festival, which is celebrated over an extended holiday period, fell in February this year, while last year, it was celebrated in January.
For the first two months of the year, total contracted sales value and area were 3.04 billion yuan, up 3.4%, and 434,616 square meters, up 19.4%, respectively.
Earlier on Tuesday, Central China Real Estate reported net profit of 811.4 million yuan for 2017, a little over twice the 403 million yuan it posted in 2016, helped by stronger sales and a sharp increase in the value of its investment properties.
It said revenue for the year rose 46.2% on year to 13.88 billion yuan as property sales improved and fee income from project management services surged.
The company made a net valuation of gain of 243.4 million yuan on its investment properties in 2017, compared with 27.2 million yuan the year before. Net profit margin for the year was 6.5% as compared with 4.3% for 2016.
Shares of Central China Real Estate fell 3.7% in Hong Kong on Tuesday, while the benchmark Hang Seng Index ended little changed at 31,601.45 points.
- By Benny Kung; firstname.lastname@example.org; +852 39605150
- Edited by Joannah Perez and Suzannah Benjamin
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