China Evergrande 3333

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DJ MARKET TALK: Evergrande May Rebound; Accusations Not Valid - DB

0737 [Dow Jones] Evergrande (3333.HK) may rebound after taking a 14.5% beating across Thursday and Friday, on concerns on solvency and liquidity following allegations of irregularities from short-seller Citron Research.

Most brokerages have come to the defense of the Guangzhou-based developer, including Deutsche Bank, which says that "the accusations are not valid as there is nothing new in the report that we are not aware of previously."

The house adds, the Citron report particularly highlighted a Ministry of Finance report on inaccurate financial statements filed by the company; "while arguments in the Citron report looks to be well-supported, they appear to be built on a fair amount of assumptions based on skepticism and in some cases, apparent misunderstandings on Evergrande's underlying business."

Evergrande finished Friday down 3.5% at HK$3.83.


Source: Dow Jones Newswire

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DJ MARKET TALK: Evergrande Bounces 4.7%; Aggressive PR Campaign

1053 [Dow Jones] Evergrande's (3333.HK) PR offensive is yielding some success, with the stock rebounding 4.7% to HK$4.01, after taking a 14.5% beating across Thursday and Friday, on concerns on solvency and liquidity following allegations of irregularities from short-seller Citron Research.

Most brokerages have come to the defense of the Guangzhou-based developer, and in Evergrande's own word, through PR Newswire, that "eight powerful investment banks including Citibank, Deutsche Bank and J.P. Morgan , all stated that there were lots of flaws in the Citron report, and that they kept optimistic about Evergrande's efforts on sales and cash flow."

For now, the confidence crisis appears over, with the stock recovering 11.4% vs Thursday's intraday low of HK$3.60.

The stock is the fourth most heavily traded in Hong Kong with HK$387.5 million.


Source: Dow Jones Newswire

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MARKET TALK: Evergrande Ups 3.9%; GS Reaffirms Buy Rtg

Source: Dow Jones & Company

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Is Evergrande China’s first fault-line? By Craig Stephen

HONG KONG (MarketWatch) — It is too early to tell if one of China’s largest property developers is indeed guilty as accused of widespread corruption and effectively technically insolvent.

But it is easy to see why investors sold first and left the questions for later.


http://www.marketwatch.com/story/is-eve ... genumber=1

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Evergrande Real Estate Group Ltd
OUTPERFORM [V]
CP: HK$ 3.97
TP: HK$ 5.40 CAP:
HK$ 59.1b

Company to refute accusations in details; share buy-back possible

We had a long discussion with Evergrande's management after its share price plunged by 11.6% on 21 June on a third party report accusing Evergrande on accounting frauds, etc.

Credit Suisse is hosting a conference call with Evergrande CEO and CFO on Friday 22 June. The company plans to issue a more detailed press release soon to clarify the issues raised. Although the clarification may not clear all the doubts about Evergrande, it may restore some confidence.

Evergrande's 1H12E net gearing may go up due to relatively weak 1Q12 sales, but should still have healthy balance sheet.

The football club's net loss should not exceed Rmb200 mn this year, according to the Chairman.

Although the negative impact on Evergrande may not go away in the near term, we believe the company's communication with investors, as well as the strong sales in June and July would help support the stock price.

We maintain OUTPERFORM rating and recommend accumulating Evergrande on stock price declines.

Source: Credit Suisse

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DJ MARKET TALK: Evergrande +3.7%; GS Disagrees With Citron Views

1402 [Dow Jones] Evergrande (3333.HK) is up 3.7% at HK$3.97, on bargain-hunting after its 14.5% fall over the past two sessions, following allegations of irregularities from short-seller Citron Research, which suggested that the Guangzhou-based developer is insolvent, had used fraudulent accounting, and offered bribes (all of which were denied by Evergrande).

Goldman Sachs says it disagrees with Citron's allegations, which "we believe are based on simplistic/illogical assumptions, due to misunderstanding of unique accounting practices for the property industry and insufficient due diligence."

The house says its financial analysis of the company as well as comparison with other listed peers, indicate that Evergrande is in a healthy financial position.

GS keeps Evergrande at Buy (on Conviction list) with a target price of HK$7.23.


Source: Dow Jones Newswire

[iam802]

Contrarian

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EVERGRANDE (03333)'s chairman increases stake to 67.79% for over $10M
2012-06-27

EVERGRANDE (03333)'s chairman Hui Ka Yan on 26 June (this Tuesday) increased stake in the company by 2.7 million shares at an average price of $3.956 apiece, which involved $10.68 million.

His shareholding in EVERGRANDE rose from 67.77% to 67.79%.

The stock bounced for the third straight day, closing at $4.03.

Source: AAStocks Financial News

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DJ MARKET TALK: Venice In China Launch Eyed For Evergrande -CS

1308 [Dow Jones] STOCK CALL: Credit Suisse keeps Evergrande (3333.HK) at Outperform with a target price of HK$5.40.

It says up to last weekend, more than 8,000 households have put down deposits for the Qidong "Venice in China" project's Phase I of 6,500 units.

"We believe the upcoming launch this weekend, combined with the company Chairman's continued share buyback, should boost the performance of Evergrande's share price."

The house says Evergrande is trading at 49% discount to forward NAV, the most attractive among large cap names in this sector. Evergrande is up 1.0% at HK$3.97.

Source: Dow Jones Newswire

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CS: EVERGRANDE (03333) Qidong project sales opening, chairman's overweight to bring support for stock price

Standard & Poor's kept EVERGRANDE (03333) credit rating last Friday with an outlook lowered from stable to negative, as the credit rating agency worried about the financial position of its football club, Credit Suisse cited in a report.

Credit Suisee also cited the management of EVERGRANDE saying that net loss of football club amounted to RMB80 million last year, accounting for 0.13% of revenue and 0.98% of core net profit.

EVERGRANDE received 8000 reservation orders for 6500 units at Phase one of Qidong “Venice in China” project. Credit Suisse believes that sales opening this weekend coupling with the share purchase of chairman Hui Ka Yan will bring support for the stock price of EVERGRANDE.

Source: AAStocks Financial News