HONG KONG, September 14, 2011 /PRNewswire-Asia/ -- Evergrande (3333.HK) released the sales performance in Hong Kong. It achieved the sales volume of 9.1 billion yuan in August, showing a strong continuous increase trend on a month-on-month and year-on-year basis. Previously, Evergrande continued to rank first among the "TOP 10 Mainland Hong Kong Stocks on the Value Ranking of Listed Companies in the Chinese Real Estate Industry" by virtue of the excellent performance in the past one year, with the brand value of 21 billion yuan. An original report by Sina Leju follows:
According to the data, in August, Evergrande achieved the sales volume of 9.1 billion yuan, and the sales area of 1.452 million square meters, with an increase of 105% and 106.9% on a year-on-year basis, with an increase of 4.8% and 5.6% on a month-on-month basis respectively. Thus, from January through August, Evergrande achieved the accumulative contracted sales volume of 60.1 billion yuan, with an increase of 97.1% on a year-on-year basis, completing 85.9% of the full-year contracted sales target of 2011; the accumulative sales area of 8.944 million square meters, with an increase of 82.5% on a year-on-year basis, ranking first in China. In addition, Evergrande's sales growth rate of the first 8 months and of the single August ranked first among Chinese real estate enterprises.
According to the insiders, the clear product orientation, the readily marketable strategy and the development mode that conforms to the market and policy direction are the key factors for Evergrande to keep the high growth. It is reported that Evergrande's product orientation is the rigid demand of the first house-purchasers and the self-occupied ordinary people. The reasonable product structure is identical with the property type and proportion demanded by the ordinary people, meeting the market demand of different regions at different levels. On this basis, Evergrande brings the high-turnover development mode into full play through the scalized and standardized operation to create readily marketable residential products, and ensures the high quality of products while achieving the effective cost control.
In addition to the strong sales growth, Evergrande also adheres to the steady operation strategy - "cash is the king". Therefore, even under the strict macro-control and in the adverse stock market, Evergrande is still regarded well by each international investment bank. JPMorgan released a report in September, quoting what Evergrande's management said at the investor meeting, that Evergrande could achieve the accumulative contracted sales volume of 70 billion yuan during the "Golden Week", and after the Week, it could achieve the monthly contracted sales volume of 10 billion yuan. The Bank estimated that Evergrande could achieve the full-year sales volume of 100 billion yuan in 2011, maintaining the "Overweight" rating. Citibank and Bank of America Merrill Lynch offered the "Buy" rating for Evergrande, with the target price of 7.5 yuan respectively. Goldman Sachs listed Evergrande as "Convinced Buy", with the target price up to 8.5 yuan.
