Agile Property Holdings plans to increase its sales target 38 per cent to 16 billion yuan (HK$18.15 billion) this year, believing that the mainland property market has stabilised in recent months. The developer yesterday reported net profit for last year surged 160 per cent to 5.47 billion yuan, an increase largely due to the sale of shares in the Hainan Clearwater Bay project to Morgan Stanley. Underlying profit, excluding the one-off gain, dropped 37 per cent to 1.33 billion yuan from 2.1 billion yuan a year earlier. However, the developer said it planned to generate 16 billion yuan this year from contract sales of 2.28 million square metres of gross floor area, compared with 1.65 million sqmetres in 2008. In the first quarter of this year, Agile generated 4.62 billion yuan from contract sales of 640,000 sqmetres in gross floor area. If the pre-sale floor area carried forward from last year is included, the company has generated 7.1 billion yuan from contract sales of 1.1 million sqmetres. This represents 48 per cent of the sales target of 2.28 sqmetres this year. 'Property prices have dropped to a reasonable level and have stabilised,' chairman Chen Zhuolin said. 'We also have seen that property sales in many cities have increased. If this can be sustained, the market outlook is optimistic.' Mr Chen said the company would speed up development and acquire more sites this year. Agile raised prices at its villa projects 10 per cent in the first quarter, compared with a year earlier, said vice-president Alex Liu. Its turnover dropped 9.56 per cent to 9.33 billion yuan last year from 10.31 billion yuan in 2007 as revenue from property sales fell. Net profit margin, excluding its one-off gain, dropped to 14.2 per cent from 20.4 per cent. Christina Ngai, an analyst at Sun Hung Kai Securities, said Agile underperformed. 'But its outlook is optimistic as its property sales were strong in the first quarter and property purchases had rebounded significantly in recent months,' she said. The company proposed a final dividend of 6.4 HK cents a share, from 15.3 HK cents in the previous year. Shares in Agile jumped 6.2 per cent to end at HK$5.65 yesterday. Other Hong Kong-listed mainland developers also saw their shares surge yesterday as the outlook for the property market improved. Shares of Country Garden Holdings rose 8.23 per cent to HK$2.63, while Guangzhou R&F Properties surged 8.6 per cent to HK$12.12. Hopson Development climbed 6.83 per cent to close at HK$6.41. Shenzhen-listed China Vanke ended 3.06 per cent higher at 8.76 yuan while Shanghai-listed Poly Real Estate Group climbed 2.89 per cent to 23.50 yuan.