China Overseas cautious on sales goal
Mainland developer aims for slight rise in target to HK$140 billion amid concern over liquidity
China Overseas Land & Investment, the biggest mainland developer listed in Hong Kong by market value, yesterday announced a conservative sales target this year in anticipation of tight liquidity.
The firm is aiming for contract sales of HK$140 billion, compared with last year's HK$138.5 billion, out of HK$220 billion worth of saleable property.
"It's a goal we have to reach no matter what the state of the market. So this may come across as a conservative target," chairman Hao Jianmin said.
"Liquidity in the financial market will tend to be tight amid market reforms and deleveraging," the company said. "The group is prudently optimistic about the property market."
China Overseas Land is in a race against rivals such as China Vanke and Greenland Group for the title of the mainland's largest developer by sales this year, aided by a possible asset injection from parent China State Construction Engineering Corp. The asset transfer is expected within three years.
Unlike some of its rivals that seek bolt-on opportunities in banking and e-commerce, China Overseas Land plans to stick to its core business. "We won't do what we are not familiar with," Hao said.
The company's net profit rose 23 per cent to HK$23 billion last year, while turnover increased 27.7 per cent to HK$82.5 billion.