Longfor Properties raises 2016 sales target after strong first half
Interim core net earnings jump 7.7pc to 2.4 billion yuan
Longfor Properties, one of the top 10 private developers in China, has raised its 2016 sales target by 21 per cent to 75 billion yuan after posted a 7.7 per cent rise in first-half core earnings.
The company saw its core net profit, excluding minority interest and revaluation gains, climb to 2.4 billion yuan in the first six months, thanks to improved sales price.
Net profit, however, dropped down 3 per cent to 3.73 billion yuan.
Gross margins recovered to 28 per cent from 27 per cent over the same period last year, driven by a higher proportion of income generated from shopping mall rental. The gross margin on rental was as high as 74 per cent.
We believe the government is positive in general on the property sector
Shao Mingxiao, chief executive officer of the Chongqin-based developer – which has a large exposure in second tier cities such as Nanjing and Suzhou — said it remains bullish about the central government’s future home policies, despite recent tightening measures in Nanjing to cool the market.