China

China Vanke Posts RMB 33.24 Bln in December Sales

Summary:

  • Real estate developer China Vanke (000002.SZ/2202.HK) reported RMB 33.24 billion in total sales for December with 2.47 million square meters sold, according to its report to the Shenzhen Stock Exchange.
  • Sales for the whole of 2015 totalled RMB 261.47 billion.
  • The company began 22 new projects in December across different cities in China, including Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Fuzhou, Dongguan, Xiamen, and Ningbo.

Why It Matters:

  • Prior to December, China Vanke reported sales in November of RMB 24.11 billion and sales in October of RMB 23.65 billion.
  • For the first nine months of 2015, China Vanke posted a 26.06% increase in revenue to RMB 79.6 billion and  a 6.14% increase in net profit to RMB 6.854 billion.
  • The consensus estimate of Chinese analysts for China Vanke’s 2015 net profit is RMB 18.46 billion, up 17.26% from the previous year. However, the analysts point out that while China Vanke’s sales numbers look good, Chinese real estate developers are facing problems such as lower profits, increasing debt-to-asset ratios, and an increasing cost of land.