Fitch Upgrades Times China to 'BB-'

Times China Holdings Limited
2018-03-28 19:59 966

HONG KONG, March 28, 2018 /PRNewswire/ -- Times China Holdings Limited ("Times China" or the "Company", which together with its subsidiaries, is referred to as the "Group", HKSE stock code: 1233) announces that its Long-Term Foreign-Currency Issuer Default Rating (IDR) was upgraded to 'BB-' from 'B+' with a "Stable" rating outlook by Fitch Ratings, one of the world's three leading credit rating agencies. Moreover, Fitch Ratings has upgraded the company's senior unsecured rating and the ratings of all its outstanding bonds to 'BB-' from 'B+'. The rating upgrade reflects the increase in the company's scale without compromise of its financial profile.

Fitch believes that Times China managed to grow quickly within Guangdong province while keeping its leverage below 40% and EBITDA margin around 20%, and the Group's strong sales and healthy financial profile are commensurate with those of its 'BB-' rated peers.

Times China targets to achieve RMB55 billion in contracted sales in 2018, driving Fitch's expectation that the Group's sales will continue to grow rapidly over the next three years. Meanwhile, the Group's efforts in pursuing redevelopment projects can relieve some pressure on the company to compete for more costly sites in land auctions. The Group also enjoys a competitive advantage in obtaining low-cost urban redevelopment projects particularly in Guangzhou and Foshan, which will help it to control land cost.

As at the end of 2017, the total land reserves of the Group reached approximately 16.8 million sq.m., which will be sufficient to meet the needs of its development for the next three to five years. The Group continued to expand its land reserves through various channels, including participation in public land auctions, urban redevelopment projects, primary land development, cooperation, and through acquisition of project companies. Over half of the land reserves are located in the major cities which are covered by the national policy of developing the Guangdong-Hong Kong-Macao Greater Bay Area, and as such, the Group is well-positioned to grasp the tremendous opportunity. This is expected to expand the Group's market share in the region and support its growth in the future.

About Times China Holdings Limited

Times China Holdings Limited is one of the leading property developers in China, focusing on the development of residential properties which are targeting the first-time home buyers and those who have the upgrader demand for the first time. The Group's shares have been listed on the Main Board of The Stock Exchange of Hong Kong since 11 December 2013. Times China positions itself as a "life stylist", with a vision of introducing modern and artistic lifestyles to increasingly affluent middle- to high-income households with relatively high disposable income and strong purchasing power. As at 31 December 2017, the Group had a total of 79 major projects in various stages of development in major cities of Guangdong Province, including Guangzhou, Foshan, Jiangmen, Dongguan, Huizhou, Zhuhai, Zhongshan and Qingyuan as well as in Changsha, Hunan Province.

Source: Times China Holdings Limited
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