BEIJING, May 13, 2011 /PRNewswire-Asia/ -- A few days ago, the listed real estate enterprises of China announced their sale performance of April one after another. In this process, the sales area and sales amount of Evergrande Real Estate were outstanding, continuing the lead state. Especially in the ranking of accumulated sales amount of the first four months this year, Evergrande was ranked No. 1 in both the sales area and sales amount among real estate enterprises listed in Hong Kong.
As for the specific data, in April, the contractual sales area of Evergrande Real Estate was 875,000 square meters and the contractual sales amount reached 6.15 billion yuan; from January. to April, the contractual sales area of Evergrande Real Estate was 3.731 million square meters and the contractual sales amount reached 25.95 billion yuan. What is worth concern is that the sales area of April, the accumulated sales area and accumulated sales amount in the year were all higher than those of other mainland real estate enterprises listed in Hong Kong.
Insiders thus said that with the highly effective team executive force and the advantageous strategic layout with foresight, Evergrande had continued the powerful increase trend and become the mainland real estate enterprises listed in Hong Kong of the best performance in the downturn of the market in April
Stimulated by the powerful performance of Evergrande, the institutions have in succession held an optimistic attitude towards the shares of Evergrande. In the research report, Deutsche Bank indicates that it has thought highly of the prospect of Evergrande Real Estate. It expects that Evergrande can become one of the winners among mainland real estate enterprises in this round of regulation and control, keeps its investment rating of Buy-in, and adjusts the target price from HKD 5.8 to HKD 7.11, with a discount of about 20% lower than the predicted net asset value per share which is HKD 8.89.
Even after the adjustment stage of Hong Kong Stocks was started at the end of April, Goldman Sachs still firmly increased the predicted indexes of Evergrande. At present, Goldman Sachs has increased the earnings estimate per share of Evergrande in both this year and next year by 11.4% and 14.1% to 0.63 yuan and 0.7 yuan respectively, kept the rating of Evergrande at Buy-in, and increased the target price to HKD 8.08. It is learned that Goldman Sachs has listed Evergrande Real Estate share among the top 12 Chinese-capital shares and set its target price at HKD 6.44 as early as one month ago.
Goldman Sachs said, due to the stable financial situation and the ideal return of money on presale, the cash in hand of Evergrande till the end of 2010 had reached 20 billion yuan. Together with the unused line of credit from banks, Evergrande had about 53.25 billion yuan of capital available in total. In addition, the total liability ratio of Evergrande in 2010 was 29.8%. As for the futuristic layout of Evergrande in 2nd-tier and 3rd-tier cities, Goldman Sachs said, "Evergrande has purchased lands, developed projects, and sold products in areas where there is relatively little influence by policies, so its sales prospect is more powerful than the estimate over the next several years".