China

China Vanke Posts 6.14% Increase in Net Profit for First Nine Months

Summary:

  • China Vanke (000002.SZ) has posted a 6.14% increase in net profit for the first nine months of 2015 to RMB 6.854 billion, reports eastmoney.com.
  • The company recorded a 26.06% increase in revenue to RMB 79.6 billion.
  • EPS was RMB 0.621 per share.

Why It Matters:

  • During the first three quarters, the rate of net profit growth was much less than the rate of revenue growth. China Vanke attributes this to its partnerships with other real estate developers in managing many projects. As a result, minority interests accounted for a large chunk of total profit during the period.
  • China Vanke is also accelerating the purchase of new land properties. During the first nine months, the firm launched 50 new housing projects, an 89.8% increase compared with the same period last year. At the same time, the average cost of land decreased from RMB 4,372 per square meter at the end of 2014 to RMB 3,731 per square meter at the end of September.
  • By the end of September, China Vanke was holding RMB 42.7 billion in cash. The firm’s current debt ratio is 23.4%, which is relatively low in the real estate development industry.