R&F Properties sees profit rise 5pc, eyes more overseas projects
Revenues enjoy robust 21pc growth to 53.7 billion yuan, with contracted sales rising 12pc to all-time-high of 60.9 billion yuan.
R&F Properties, the Chinese developer, has posted a 5 per cent rise in annual net profit for 2016, helped by strong property prices on the mainland before cooling measures were introduced in many cities late last year.
The Guangzhou firm, which is also developing residential projects in Australia and Malaysia, said it is planning further expansions into new destinations abroad following robust sales of its properties in Brisbane, particularly.
R&F recorded a net profit of 7.1 billion yuan (US$1.03 billion) last year, up from 6.7 billion yuan in 2015, according to its latest figures published on Friday.
Revenues enjoyed a robust 21 per cent growth to 53.7 billion yuan, with contracted sales rising 12 per cent to an all-time-high of 60.9 billion yuan.
Its shares closed up 1.9 per cent at HK$12.1 in Hong Kong on Friday, and have now risen 29.2 per cent this year. The company is waiting for a mainland listing to be approved.
New home prices in China surged 12.4 per cent in 2016, the fastest rate since 2011. But since October, many local authorities have been rolling out tightening measures, including restricting mortgage loans and cracking down on developers who were overbuilding on cheap financing.
However, analysts still expect home prices to rise a median 5 per cent in the first half of the year and 2 per cent for the full year, according to a Reuters poll.
R&F’s chairman Li Sze-lim said he has now set an aggressive 30 per cent growth target for its 2017 contracted sales, adding its presence in a diversified group of cities has make it resilient in the face of local cooling policies.
“With financing in place and completion of several land acquisitions, we are optimistic about the outlook of the industry and hence have set a contracted sales target of 73 billion yuan for 2017,” said Li.
In 2016, the company bought five million square metres of land at an average price of 3,500 yuan per square metre.
R&F is also one of the most active Chinese developers overseas. Last year, it recorded 763 million yuan’s worth of contracted sales in Johor Bahru in Malaysia and another 791 million yuan’s worth from high-end apartment sales in Brisbane.
The company plans to launch another two projects, in Brisbane and Melbourne.
“The group will continue to seek selective offshore opportunities that provides attractive long-term strategic benefits and returns,” the chairman said.