Due to the Sales Volume of Over 10 Billion Yuan Exceeding the Market Expectations, the Stock of Evergrande Sharply Increased by 4%
BEIJING, June 12, 2012 /PRNewswire-Asia/ — On June 11, Evergrande released the sales report of May 2012. According to the report, in May, Evergrande achieved the sales volume of 10.37 billion yuan, 1.25 times of the total sales volume in the first quarter, with many sales performance indicators including sales area ranking No.1 throughout the country. With a flow of positive sales expectations in May, the stock price of Evergrande reached closing prices of HKD 4.32 and HKD 4.49 two consecutive trading days before the sales performance release, achieving 7% and 4% daily increase respectively. The day after the sales performance release, the stock price of Evergrande witnessed a 4% steep jump on the basis of the closing price HKD 4.67. An original report from Sina Leju follows:
Under the current broad environment where the real estate macro-control is still strict, Evergrande achieved the sales volume of 10.37 billion yuan in May in the adverse market, with the single-month sales volume exceeding 10 billion yuan for the first time, creating the highest single-month sales record of the Group throughout history. It’s worth mentioning that Evergrande has achieved substantial growth for three consecutive months recently, and even successfully entered “the club with the single-month sales volume of 10 billion yuan” in May.
Previously, with a flow of significantly positive sales expectations, the international capital market was generally optimistic about Evergrande. By the last trading day in May, the closing price of Evergrande was HKD 4.26. Recently, according to Bank of America Merrill Lynch, interest cuts had a galvanising impact on the sentiments of Mainland real estate enterprises, and could slightly improve the affordability of house purchasers, with Evergrande and China Resources as preferred developers.
By the end of May this year, the number of projects on sales owned by Evergrande in China was 149, 1.91 times that in the same period last year, which was 78. According to the report, Evergrande newly opened 6 projects in second- and third-tier cities in May, i.e. Hengyang Evergrande Oasis, Hefei Evergrande Royal View, Shaoguan Evergrande City, Linfen Evergrande Palace, Nanchang Evergrande City and Yancheng Evergrande Metropolis. The sales volume of the 6 newly opened projects was 2.117 billion yuan, with excellent market performance.
According to the market participants, due to the forward-looking layout in the second- and third-tier cities throughout the country, as well as the high-turnover mode of rapid development and rapid sales to guarantee that there are marketable buildings all year round, Evergrande can always achieve the sustainable growth of sales performance as per the established targets. It is revealed by Evergrande that it will newly open 6~8 projects throughout the country in June, and will newly open 30~40 projects in the next half year as planned. Therefore, it is expected for Evergrande to complete the sales target of 80 billion yuan ahead of schedule again this year.
SOURCE Sina Leju