|By PR Newswire||
|August 27, 2013 11:43 PM EDT||
BEIJING, Aug. 27, 2013 /PRNewswire/ -- Evergrande saw remarkable market performance today, with the stock pricing rising by 5.15% to HK$3.47 at the peak, largely thanks to the eye-appealing semi-annual report published yesterday. The stock of Evergrande closed at HK$3.40 per share yesterday, with a turnover volume of 85.31 million shares and a rise of more than 3%, ranked No. 1 in the real estate sector of Hong Kong Exchange.
Data shows that the total asset of Evergrande was 274.59 billion yuan (RMB, the same below), a year-on-year growth of 38.6%, as of June 30, maintaining its position as the largest mainland real estate company listed in the Hong Kong Exchange. In the first half, Evergrande realized a total business income of 41.95 billion yuan, a year-on-year growth of 13.3%, ranking No. 1 on the market of China; the Group sold a total of 6.65 million sq.m., a year-on-year growth of 15.2%, maintaining its No. 1 position of mainland real estate companies listed on Hong Kong Exchange; the Group realized a total net profit of 6.51 billion yuan, a year-on-year growth of 15.8%, 1.4 times of that realized by Vanke, second only to China Overseas Property.
It is worth mentioning that the total cash in hand of Evergrande increased to 41.97 billion yuan, a year-on-year growth of 69.6% as of the end of the reporting period, which is the greatest increase since it was publicly listed. Its net debt rate shrank to 58.4%, 37.7 percentage points down, ranking Evergrande No. 1 of all giant real estate companies in China in reducing the debt rate.
Evergrande was highly recognized by domestic and international investors, thanks to its excellent performance in business results, profit growth, financial stability and regional distribution of its business. DBS, considering Evergrande's performance excellence and robust pre-sale capacity beyond expectations, continues to maintain its "buy-in" rating of Evergrande in its report published today and raises the target price to HK$4.66. Standard Chartered Bank and Deutsche Bank pointed out in their reports issued today that they are confident of the land acquisition strategy, growth of the core net profit and the stability of gross profit and continue to maintaining its "buy-in" rating of Evergrande, with the target prices established at to HK$4.00 and HK$5.25, respectively.
BOCI considers that the financial status of Evergrande has been improved, with its sound cost control and the sharp drop in its net debt rate. Believing that Evergrande's strategy focusing on projects in Tier-1 and Tier-2 cities will further consolidate its profitability, BOCI continues to maintain its "buy-in" rating of Evergrande, with a target price of HK$4.9. According to Credit Suisse, the market value of Evergrande remains attractive. Considering that Evergrande has fulfilled 53% of its target for 2013 and 39 new projects will soon be launched onto the market, Credit Suisse is confident of Evergrande's realization of its target of 100 billion yuan for 2013.