China

China Vanke Posts RMB 17.76 Bln in April Sales

Summary:

  • Leading Chinese real estate developer China Vanke (000002.SZ) has announced that sales totaled RMB 17.76 billion for April, with 1.46 million square meters sold.
  • Sales for the first four months of the year totaled RMB 64.1 billion.
  • The company said it started six new projects in April, in Hangzhou, Jiaxing, Ningbo, Taiyuan, and Jinan (two projects). Vanke will pay nearly RMB 2 billion for the land.

Why It Matters:

  • Previously, China Vanke reported March sales of RMB 14.74 billion and February sales of RMB 8.39 billion.
  • China Vanke posted a 57.5% decrease in net profit for 1Q 2015 to RMB 650 million and a 4.2% increase in 2014 net profit to RMB 15.75 billion. China Vanke explained that real estate completions and settlements generally take place in the last half of the year. Board Secretary Huajie Tan said that house completions in the first quarter of 2015 accounted for only 5.5% of estimated completions for the whole year.
  • Chinese analysts’ consensus estimate for China Vanke’s 2015 net profit is RMB 19.89 billion, up 26.34% from the previous year.