Yanlord Land

[behappyalways]

Yanlord total contracted pre-sales rises 27.5% to $2.33 bil for four months ended April
https://www.theedgesingapore.com/capita ... nded-april

[winston]

not vested

Chinese property developer Yanlord Land Group recorded 18.92 billion yuan (S$3.71 billion) in total contracted presales from residential units, commercial units and car parks for the first five months of the year, a 68.4 per cent increase over last year, it said in a bourse filing late on Wednesday.

The presales were for a contracted gross floor area of 526,746 square metres (sq m) - 41.8 per cent higher than the same period last year.

Source: Phillips

[winston]

not vested

Initiation Report

We initiate coverage of Yanlord with an OUTPERFORM recommendation and a target price of S$1.30. Our TP is based on a Sum-of-the-Parts valuation between Yanlord’s development and rental businesses.

The Chinese property market is one of few sectors that continued producing steadfast results amidst a recovering Chinese economy.

Yanlord’s target market segment has also been relatively unaffected, as luxury home purchases continue to rise.

Recent 5M20 data shows promise, and management is confident of hitting pre-sale targets given earlier in the year.

Yanlord’s expansion into Singapore could be helpful for local investors to gain a better understanding of the company, which currently has the highest dividend yield across SGX-listed property developers, and a very fair dividend payout ratio.

Source: KGI

[winston]

not vested

Chinese property developer Yanlord Land Group recorded 29.8 billion yuan (S$6 billion) in total contracted pre-sales from residential units, commercial units and car parks in the first half of the year, a 65 per cent increase from the previous year.

Source: Phillips

[winston]

not vested

Results Update

Yanlord released strong June 2020 pre-sales figures - +59.5% YoY and +49% MoM.

On a 6-month comparison basis, 6M20 pre-sales is +65% YoY. Contracted GFA has also increased, with 6M20 GFA at +30.7% YoY.

Pre-sale figures also came in strong across the industry. If Yanlord is able to maintain sales momentum, we expect the company to exceed their RMB 70 bn sales target.

We now incorporate valuation of Yanlord’s investment property and hotel assets.

Our new TP is S$1.45, a 9.3% upside. Maintain OUTPERFORM.

Source: KGI

[winston]

not vested

Yanlord and GIC to co-invest up to $1.38 billion in China residential projects

Developer Yanlord Land Group, which has most of its projects in China, is teaming up with sovereign wealth fund GIC to co-invest in residential projects in China.

Under this so-called cooperation programme, which is held in a 51:49 split between Yanlord and GIC, the two parties will invest up to RMB7 billion ($1.38 billion) over a seven-year period. They have the option to extend the programme by another two years.

This isn’t the first time Yanlord and GIC are joining hands. Since 2006, the two parties have co-operated to invest in Nanjing and other key cities in China.

“The cooperation programme will further strengthen our presence in the PRC and create value to the shareholders,” says Yanlord’s chairman and CEO Zhong Sheng Jian.

On July 6, the company reported a 65% increase in total contracted pre-sales to RMB29.77 billion for 1H20 ended June, compared to RMB18.04 billion in 1H19.

Source: The Edge

https://www.theedgesingapore.com/news/p ... l-projects

[behappyalways]

Yanlord posts 57.3% increase in total contracted pre-sales to RMB35.74 bil for seven months ended July
https://www.theedgesingapore.com/capita ... nths-ended

[winston]

not vested

Yanlord reports higher revenue but lower profit for 1HFY20

China-based developer Yanlord Land Group has reported higher revenue for 1HFY20. However, because it was selling a less profitable mix of projects, earnings for the same period dropped instead.

For the six months to June 30, Yanlord recorded revenue of RMB9.2 billion ($1.82 bil), up 18.2% y-o-y.

However, its gross profit margin was just 35.9%, versus 46.5% in 1H2019 as it sold a larger proportion of projects that fetched a lower margin.

As a result, its earnings for the same period was RMB492.9 million, down 59% y-o-y from RMB1.19 billion.

“The weaker global economy due to the COVID19 pandemic, coupled with the implementation of introduced austerity measures will continue to present near term challenges to the PRC real estate sector,” said Zhong Sheng Jian, Yanlord’s chairman and CEO.

The company is seeing a steady earnings pipeline. During 1HFY20, it booked presales of some RMB29.8 billion, up 65% y-o-y. Average selling price for the units pre-sold was RMB35,80 per square metre, up 26.2% y-o-y.

As of June 30 2020, Yanlord, together with its joint venture partners and associates held a total landbank of some 10 million sqm in 17 cities in China. Zhong said the company will be “prudent” in acquiring more land.

On Aug 4, Yanlord signed an investment agreement with Singapore’s sovereign wealth fund GIC to co-invest up to RMB7 billion in residential projects in China.

“Moving forward, we will continue to penetrate our presences in core high growth cities, and when opportunities arose, we will expand into new cities and new economic regions,” said Zhong.

As at June 30, Yanlord’s net asset value per share was RMB14.56 ($2.88) down slightly from RMB14.62 as at Dec 31 2019.

Source: The Edge

https://www.theedgesingapore.com/news/y ... fit-1hfy20

[winston]

not vested

Yanlord Land Group (YLLG SP) - Robust contracted sales but earnings disappoint

Yanlord Land Group Limited’s (Yanlord) 1H20 results came in below our expectations, as PATMI fell 58.5% YoY to RMB492.9m.

On a brighter note, Yanlord has achieved contracted sales of RMB35.7b for 7M20, which translates into YoY growth of 57.3% and certainly comes in well above the industry average.

Yanlord has accumulated contracted pre-sales pending recognition of RMB75.8b (as at 30 Jun 2020), which would underpin stronger growth momentum in 2H20 and FY21, in our opinion.

Management is targeting FY20 contracted sales of RMB70b, which would imply growth of 25.7%.

We are expecting Yanlord to beat its guidance, and are forecasting growth of 30%.

In terms of financial position, Yanlord’s net gearing ratio stood at 88.2%, as at 30 Jun 2020, versus 80.1% as at end-FY19.

Management is hopeful of lowering this by the end of the year.

After adjustments and rolling forward our valuations to 5x FY21F core EPS, our fair value declines from S$1.45 to S$1.41. Maintain BUY.

Source: OCBC

[winston]

not vested

Results Update

Yanlord reported 1H20 results, where sales are up 18% YoY, on the basis of strong Gross Floor Area (GFA) delivery. However, PATMI decreased 59% YoY.

July 2020 pre-sales figures were reported earlier in the month, which remain on track for Yanlord’s RMB 70bn target.

We expect property ASP to pick up based on our estimates of pre-sales figures prior to 7M20. However, management warned of margin compression. We expect PATMI to remain subdued into FY2021.

Our new TP is S$1.52, an 18.2% upside. Maintain OUTPERFORM.

Source: KGI