Yanlord Land Group Ltd

Yanlord Land Group has strong exposure to key economic regions in PRC such as the Yangtze River Delta, Bohai Rim and Greater Bay Area. Its prudent land acquisition strategies and superior product quality has translated into favourable land cost to ASP ratio. Key management’s interests are also aligned with minority shareholders, as Yanlord’s founder, Chairman and CEO has been actively buying back shares and now owns close to 70% of Yanlord’s total shares outstanding.

Company description

Yanlord Land Group Limited (Yanlord) is a real estate developer based in the PRC focusing on the development of high-end fully-fitted residential, commercial and integrated property projects in strategically selected key and high-growth cities in the PRC. Yanlord Land Group Limited was listed in June 2006 on the Mainboard of the Singapore Stock Exchange. Currently, the Group has an established presence in 15 key high-growth cities within the six major economic regions of the PRC, namely, (i) Yangtze River Delta – Shanghai, Nanjing, Suzhou, Hangzhou and Nantong (ii) Western China – Chengdu; (iii) Bohai Rim – Tianjin, Tangshan and Jinan; (iv) Southern China – Shenzhen, Zhuhai and Zhongshan; (v) Hainan – Haikou and Sanya; and (vi) Central China – Wuhan.

Beating expectations

Yanlord's recent 3Q18 results were solid, with PATMI beating our expectations. Revenue jumped 51.7% YoY to RMB5,711.6m, underpinned by a 40.1% increase in GFA delivered (147.1k sqm) and 3.1% increase in ASP to RMB33,758 psm. PATMI increased 61.3% YoY RMB1,012.4m. For 9M18, Yanlord’s revenue rose 57.1% to RMB22,562.6m, forming 75.5% of our FY18 forecast. PATMI of RMB3,287.7m represented an increase of 62.4% and this accounted for 87.8% of our full-year projection due largely to lower-than-expected noncontrolling interests (PAT accounted for 78.4% of our FY18 forecast).

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