China Evergrande 3333

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DJ Evergrande January Contracted Sales CNY3.48 Bln; Up 331.3%
Feb 8, 2010

HONG KONG (Dow Jones)--Evergrande Real Estate Group Ltd. (3333.HK) said Monday its January contracted sales rose 331.3% from the year-earlier month to CNY3.48 billion.

The average selling price of the properties amounted to CNY5,921 per square meter, up 48.8% from the year-earlier month, the developer said in a statement.

The company didn't provide year-earlier figures for comparison.

Source: Joyce Li, Dow Jones Newswires

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Evergrande boss ready to pay

Evergrande Real Estate (3333) chairman Hui Ka-yan said he will have to compensate strategic investors a maximum of HK$1.12 billion in keeping with his promise to dig into his own pockets if the developer's shares fell below its listing price.

Hui said yesterday that his current financial position is "healthy enough" to cope with the amount.

He pledged to pay key investors if Evergrande's average share price fell below HK$3.50 from May 5 to November 5 this year. The stock closed at HK$2 yesterday.

The compensation is based on a formula under which strategic investors agreed to an 18 percent discount to their actual return.

On this basis, there will be compensation for strategic investors including Bank of America Merrill Lynch, BofA Merrill Lynch Fund, Singapore's Temasek Holdings and Hong Kong jewelry chain Chow Tai Fook.

Evergrande listed in Hong Kong in October.

New World Development (0017) and Chow Tai Fook chairman Cheng Yu-tung and Chinese Estates (0127) chairman Joseph Lau Luen-hung each invested US$50 million (HK$390 million) as cornerstone investors.

Evergrande chief executive James Xia Haijun said earlier that the guarantee had nothing to do with the developer's financial standing.

But before that, its share price dropped nearly 46 percent in one month after Beijing launched its tightening measures to rein in the property market.

Separately, Evergrande said it will maintain its 15 percent nationwide sales discount on flats.

"Sales performance has been good after we announced the discount," Hui said at the annual general meeting.

Meanwhile, C C Land (1224) said it is not under pressure to reduce prices as it has net cash of HK$1 billion.

The mainland developer said sales in the first four months of the year amounted to 1.5 billion yuan (HK$1.71 billion).

The company is optimistic of meeting its sales target of 3.4 billion yuan for this year, said deputy chairman and managing director Peter Lam How-mun.

The average selling price of the firm's One Central @ Midtown project in Chongqing rose to more than 10,000 yuan per square meter last month from 8,000 yuan psm in January.


http://www.thestandard.com.hk/news_deta ... 00525&fc=2

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DJ MARKET TALK: Evergrande +5.9%; Sales To Stay Strong; Buy -GS

1015 [Dow Jones] Evergrande (3333.HK) +5.9% at HK$2.68, adding to 2.4% rise Tuesday after company raised FY10 property sales target by 10% to CNY40 billion.

"We believe the better-than-expected property sales achieved in 1H10 reflects the management's strong execution capability in view of the recent policy changes," says Goldman Sachs. Expects Evergrande's contract sales to continue outperforming peers due to its relatively lesser exposure to overheated cities such as Beijing, Shanghai; higher exposure to central, western China, diversified project pipeline, large scale of new launches in 2H10.

House raises target by 2% to HK$3.47, after raising NAV by 2% to HK$5.78. Also raises FY10 contract sales by 26%, raises FY10-FY12 EPS forecasts by 1%-8%. Keeps at Buy, Conviction Buy. Stock off fresh month-to-date high of HK$2.70, remains far from psychological HK$3.00 level.

Source: Dow Jones Newswire

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DJ MARKET TALK: Evergrande Falls 15.4%;Says Report On Accounting Is "Untrue"

1326 [Dow Jones] Evergrande (3333.HK) falls 15.4% to HK$3.79 -- briefly falling to HK$3.60 -- with volume spiking to HK$1.75 billion, making the stock the mostly heavily traded in Hong Kong.

"There was a report released by Citron Research that came out this morning, that raised a lot of questions on Evergrande," says Jackson Wong, an investment manager at Tanrich Securities.

In a 57-page report seen by Dow Jones Newswires, short-seller Citron Research alleges accounting irregularities at the Guangzhou-based developer.

A fund manager says Citron is "a bit like Muddy Waters," the short-seller that made a name for its assertions of irregularities at Sino-Forest Corp.

Evergrande in a brief statement says "an institution has issued a report (that says) the company has used accounting tricks and bribes to hide the fact that it is truly insolvent. The company would like to clarify that the allegation in the report is untrue."

Citron Research founder Andrew Left says in an email to Dow Jones the firm had not spoken with executives at Evergrande before issuing the report, but says it has been looking into Evergrande for a few months. He also says the firm has been publishing reports for 11 years.


Source: Dow Jones Newswire

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DJ MARKET TALK: Evergrande to Maintain Sales Momentum - CIMB
June 12, 2012

1703 [Dow Jones] Chinese property developer Evergrande Real Estate (3333.HK) is expected to maintain its strong sales growth over the next two months, according to a research note by CIMB, due to stronger-than-expected sales response from its Qidong project, and six to seven new projects will be launched in June.

With an "attractive" valuation of 57% discount to RNAV, the house maintains an outperform rating on Evergrande.

The target price is HK$6.30, at a 40% discount to RNAV, compared to Tuesday close of HK$4.67. The developer finished the day up 4%, up 19.4% over the last five sessions, joining a broad rally in Chinese property companies.


Source: Dow Jones Newswire

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DJ MARKET TALK: Mainland Developers Down; GC Likes Evergrande
May 23, 2012

GuocoCapital says a slowdown in contracted sales caused profit-taking on Chinese property stocks since the beginning of May but "current sector valuation has turned attractive again," with the top ten players presently trading at an average FY12 P/E of 6.8X and 46% discount to NAV.

The house's top pick is Evergrande (3333.HK), which is priced at 4.7X FY12 P/E; its three-month price target is HK$4.95 based on 6.0X FY12 earnings.

Source: Dow Jones Newswire

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DJ MARKET TALK: BOCI Starts Evergrande At Buy; HK$4.90 Target
April 02, 2012


1347 [Dow Jones] STOCK CALL: BOCI starts Evergrande (3333.HK) at Buy with a target price of HK$4.90, based on a 45% discount to FY12 NAV.

It says Evergrande is China's largest property developer in terms of land bank; since 2010, it has expanded its footprint to tier-3 and 4 cities on a large scale.

Given that the economic growth and disposable income growth in these cities have accelerated since 2009, and the total number of these cities is about 6X-7X more than tier-1 and 2 cities (coupled with continuous urbanization), the overall end-user demand for better housing standards is increasing in lower-tier cities.

"We think that the current policy environment is more favorable to end-user products, which are exactly Evergrande's target market."

BOCI says the stock is currently trading at a 53.3% discount to its estimated FY12 NAV--"a valuation we consider undemanding given its relatively sound fundamentals."

Source: Dow Jones Newswire

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Evergrande Slumps on Short-Seller Report: Hong Kong Mover

Evergrande Real Estate Group Ltd. (3333), China’s second-biggest developer by sales, fell by the most since September in Hong Kong trading after it was targeted in a newsletter by short-seller Citron Research. Evergrande said claims in the report were untrue.

The stock pared a record loss to end 11 percent lower at HK$3.97 at the close. Directors of Evergrande noted a report claiming the company “has used accounting tricks and bribes to hide the fact that it is truly insolvent,” and said the allegations are false, according to a statement sent during the midday trading break.

The developer, one of the 114 companies that the government inspected last year, provided inaccurate information on 6.4 billion yuan ($1 billion) of assets in its 2009 financial report, overstated costs and underpaid taxes, the ministry of finance said in a statement in October. The developer said the irregularities came from its Guangzhou unit and they were rectified in the 2010 statement.

Evergrande said its cash flow is sufficient and denied Citron’s allegations that it has acquired land illegally, the Securities Times reported today, citing Chairman Hui Ka Yan as saying on an investor call. The company’s directors will consult with lawyers, the report said, quoting Hui.

Short interest as a percentage of shares outstanding rose to 6.74 on June 19, according to the most recent data compiled by Data Explorers.

Evergrande posted contracted sales of 10.4 billion yuan in May, a record single month for the developer, it said in an e- mailed statement on June 11.

The report was posted on Citron’s website yesterday. The research firm gives its address as a post office box in Beverly Hills, California. They didn’t provide a phone number on the website. There was no immediate reply to a message left via the website.

http://www.bloomberg.com/news/2012-06-2 ... mover.html

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vested

Deception on a Grande Scale

Citron Research is pleased to present our analysis of Evergrande Real Estate Group. This research and analysis, compiled over several months, presents the conclusion that HK:3333 is essentially an insolvent company that has consistently presented fraudulent information to the investing public.

We prove this conclusion in the following presentation.

Evergrande is not a story about the “China real estate bubble”; rather it is a tale of a company who has abused the capital markets as well as the generous lending of the Chinese Government in order to enrich one man, aggrandize his personal ego and support his pet projects.

Bribery, excessive spending, and off-balance sheet transactions are the foundation of Evergrande’s financials.

The situation at Evergrande is so murky that, within the last year, even the Chinese Ministry of Finance fined Evergrande for reporting inaccurate financial statements.

Citron wants to make one thing clear: we do not recommend shorting any of China’s state owned banks or any construction project backed by the Government of China.

On the other hand, we believe that Evergrande has misled investors and represents the worst of Chinese neo-capitalism, and therefore represents a good short opportunity in relation to other exposure in the Chinese capital markets.

Whether it be the capital markets, government enforcement, hard or soft landing, the endgame for Evergrande is a certainty; the only uncertainty is the timing.

http://www.citronresearch.com/wp-conten ... search.pdf

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DJ MARKET TALK: Evergrande Down 2.3%; Barclays Keeps At Equal Weight

0938 [Dow Jones] STOCK CALL: Following Evergrande's (3333.HK) conference call Thursday to address accusations made by Citron Research, Barclays says "there is still no clarity on whether the accusations are true or false."

Evergrande shares fell 11.4% to HK$3.97 Thursday after a Citron Research report accused Evergrande of "financial shenanigans, bribery in land acquisition, and the chairman's side business."

Evergrande's management stated in Thursday's conference call that the accusations are untrue and that it will take legal action immediately.

Seeking to reassure investors on its financials and operation outlook Evergrande said there's no off-balance sheet debt and noted investment properties are valued by a third party, its cash position is audited by PWC and the trust loan's interest rate mentioned in the report was false.

It also said that its sales are on track. "We think it will take the company and the auditor/valuers more time to go through the (report)...to address investors' concerns in detail," Barclays says.

It keeps Evergrande at Equal Weight, HK$4.12 target. Shares are down 2.3% at HK$3.88.


Source: Dow Jones Newswire