CIFI Group, Franshion post solid earnings growth for 2013
Two mainland developers reported encouraging earnings results yesterday as the housing and commercial property markets grew last year, casting a positive glow on the long-term outlook despite an anticipated slowdown in the economy.
Cifi, a medium-sized residential developer with projects in first and second-tier cities, said it boosted its core net profit 65 per cent to 1.52 billion yuan (HK$1.93 billion) from 920.6 million yuan in 2012.
Commercial property developer Franshion Properties (China) said net profit excluding fair value gains on investment properties reached HK$2.91 billion, a rise of 35 per cent. Bottom-line profit was HK$4.23 billion, 25 per cent higher than in 2012.
Revenue grew 21 per cent to HK$20.72 billion.
During the year, Franshion saw revenue from property development rise 25 per cent to about HK$16.87 billion, accounting for 81 per cent of overall turnover. Property leasing contributed HK$1.25 billion.
The rental income was mainly derived from Beijing Chemsunny World Trade Centre and Jin Mao Tower.
Franshion proposed a final dividend of 9.5 HK cents per share, an increase of about 36 per cent from a year earlier.
Cifi chairman Lin Zhong said the company had set its initial target for contracted sales this year at 22 billion yuan, an increase of about 43.8 per cent from the previous figure.
Last year's contracted sales rose 60.5 per cent to 15.32 billion yuan.
Turnover grew 46.2 per cent to 11.91 billion yuan.
Gross profit margin increased to 25.8 per cent from 23.7 per cent.
Cifi will pay a final dividend of seven HK cents per share, against four HK cents previously.
Shares of Cifi yesterday rose 1.28 per cent to close at HK$1.58. Franshion jumped 4.05 per cent to HK$2.31.