Update | China Overseas Land’s 2016 profit rises amid record property prices
Property giant China Overseas Land net profit climbs 6.9 per cent as it targets 210 billion yuan in sales in 2017, unchanged from previous year
State-owned developer China Overseas Land & Investment, said its full-year net profit for 2015 climbed 6.9 per cent, amid record property prices in the country over the past two years.
Net profit for the year to December 31, 2016 rose to HK$37 billion (US$4.76 billion), or HK$3.64 per share. Core earnings, excluding fair value gains, rose to HK$31.4 billion, in line with the expectations of analysts polled by Bloomberg.
The developer has set a target for contracted sales in 2017 of 210 billion yuan (US$30.4 billion), unchanged from its sales in 2016.
“The policy regulation by the central Chinese government will continue,” China Overseas chairman Xiao Xiao said in a statement announcing the results. “China’s property sales are expected to experience some resistance in the first half of 2017 as market consolidation accelerates, with the sector overall presenting both challenges and opportunities.”
The key concern of the company is if the new CEO will pursue a growth pace that can catch up with the industry average
Excluding losses generated by property assets acquired from Citic Group, the profit attributable to shareholders increased to HK$38.4 billion.
Revenue decreased 3.2 per cent to HK$164 billion.