SHUNDE, China, May 14, 2017 /PRNewswire/ -- Chinese real estate developer Country Garden Holdings Company Limited (2007.HK) announced recently that, for the four months ended April 30, 2017, the company and its subsidiaries, joint ventures and associates, achieved contracted sales of 204.2 billion yuan (approx. US$29.6 billion). The positive results allowed the company to maintain its leading position worldwide for this key indicator. The sales represent an aggregate gross floor area (GFA) of approximately 22.56 million square meters.
A spokesman for Country Garden explained that the developer is committed to building affordable, quality housing, while the superior performance during the four-month period was mainly driven by the market and by the well-established reputation of the brand.
Country Garden has defined 2017 as "the year of quality management", explaining, by way of a metaphor, that the heart and soul of the dedicated craftsman goes into every brick that is laid. The company upgraded the standards applied to every step of the workflow and production chain, including site selection, the construction process, layout of the residential units and quality of the fixtures, not only offering a good home to families from different walks of life, but also providing comprehensive community support facilities and property services.
The spokesperson disclosed that, during the four months, Country Garden followed all the guidelines issued by the Chinese government in terms of assuring buyers of reasonably priced accommodations and the market of a steady supply of new housing units. These actions contributed to the positive sales results.
Country Garden's growth has been reflected by the firm's performance in the capital markets, with the market value climbing steadily to exceed HK$160 billion (approx. US$20.5 billion). JPMorgan said in its research report that the bank maintains an "Outperform" rating, in consideration of the developer's "strong cash flow growth, a declining net gearing ratio, steady performance in the second half of 2016 and decreased financing activities". JPMorgan noted that Country Garden is the only listed real estate company in China that continues to undertake large real estate projects in and around first- and second-tier cities, an approach that the bank considers as having low policy-related risks and is consistent with China's new urbanization policy that is a part of the country's economic development strategy as outlined in the 13th Five-Year Plan. Country Garden is also one of the few real estate companies to have a well thought-out and reasonable incentive system, with headquarters trusting regional branches on land acquisitions, ensuring the profitability of projects. In addition, Nomura raised Country Garden's target price to HK$7.90 (approx. US$1) per share and expects its earnings growing by more than 30 per cent this year. Citigroup, Deutsche Bank and other rating institutions also gave Country Garden a "Buy" rating.
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SOURCE Country Garden Holdings