Longfor Properties cautiously upbeat after H1 profit rises
Longfor Properties said net attributable profit rose slightly to 3.85 billion yuan, in the first half of this year and was cautiously optimistic about prospects for the sector despite government attempts to rein in property prices.
In the year earlier period, the mainland based property developer and investor announced a 3.81 billion yuan profit.
Excluding minority interests and revaluation gains, core profit was 2.74 billion yuan, the company said in a filing to the Hong Kong Stock Exchange.
The company warned liquidity concerns internationally and slowing economic growth in China meant that that the real estate market “will be subject to a broad array of uncertainties in the near future.
But with the new government administration’s push for market oriented reforms and focus on structural changes of the economy, we believe will present much longer term opportunities for the real estate industry,” the company said.
It said large-scale migration within China was underpinning demand for property.
“As such, the group will strive to maintain its competitive edge and growth prospects through rational regional expansion, precise product positioning, and provision of high quality services,” it said.
Last month, new home prices in China rose the most last month since January last year on speculation that Beijing would refrain from imposing tighter curbs on the market.
The group also said construction of Hangzhou Time Paradise Walk, Chengdu Time Paradise Walk Phase I and Changzhou Longcheng Paradise Walk had began in the first half of the year. Chengdu North Paradise Walk would being in the second half, while Beijing Time Paradise Walk, Shanghai Hongqiao Paradise Walk and Chengdu Jinnan Paradise Walk “are expected to begin construction in the coming year.”
“These projects lay a solid foundation for the future growth in rental income from investment properties of the group,” it said.