Sino-Ocean may book 4byuan from sales

PUBLISHED : Saturday, 29 March, 2008, 12:00am
UPDATED : Saturday, 29 March, 2008, 12:00am

Beijing-based Sino-Ocean Land Holdings has locked in four billion yuan (HK$4.44 billion) in revenue from the sale of 337,440 square metres of residential and commercial space, which can be booked this year.

The Hong Kong-listed developer said it aimed to complete a gross floor area of 1.4 million square metres this year - about 24 per cent of the space has been sold for an average of 11,853 yuan per square metre.

Sino-Ocean Land told analysts that it expected the average floor area price booked this year to be 30 per cent higher than last year.

The developer did not cut the asking prices for its projects. Prices for its projects in Beijing rose 2 to 3 per cent this month, compared with the end of last year.

Sino-Ocean Land said revenue from property sales last year surged 54.3 per cent to 5.43 billion yuan, mainly on an increase in saleable area completed during the period.

The company booked revenue from the sale of 677,301 square metres last year, up from 450,587 square metres in the previous year.

However, the average price rose 2.7 per cent to 8,009 yuan per square metre, while property prices rose significantly last year.

The developer's underlying profit, excluding property revaluation gains and interest income, rose 149 per cent to 1.47 billion yuan last year from 590 million yuan in 2006.

Net profit surged 201.8 per cent to 1.72 billion yuan from 570 million yuan as revenue grew 55 per cent to 5.75 billion yuan.

First Shanghai Securities analyst Samson Man said the company met its own profit forecast but was about 9 per cent lower than his projection 'because of a delay in the completion of a project and an average price increase of just 2.7 per cent'.

Mr Man forecast a net profit of 3 billion yuan for this year and 3.8 billion yuan next.

The company has a land bank with a gross floor area of 10.18 million square metres in six cities, sufficient for development needs for the next three to four years.

Chief executive Li Ming said the company needed to acquire a gross floor area of 3 million to 5 million square metres per year to meet its development targets.

The company acquired a gross floor area of 4.68 million square metres last year.

The developer declared a final divided of 12 HK cents per share.

Sino-Ocean Land shares rose 5.08 per cent to close at HK$7.66 yesterday.