Evergrande Sets Up Record with 14.3 Billion in Sales amount; Stimulates Stock Price by Taking the Lead in Growth in HK Stock Market

Nov 07, 2012, 11:32 ET from Sina Leju

BEIJING, Nov. 7, 2012 /PRNewswire/ -- Sina Leju today reported on the latest happenings in the local real estate market. According to the sales presentation for October of 2012, released on 6 November by Evergrande Real Estate(3333.HK), the sales amount achieved by Evergrande in October surpassed RMB10 billion again and accounted for RMB14.26 billion, ranking first in China. With a 65.6% growth year-on-year in October and 75.6% growth on a month-on-month basis, Evergrande has set up the highest single-month sales record of the Group in its history. The selling area reached 2.55 million square meters, representing year-on-year growth of 82.4% and month-on-month growth of 75%, ranking first for seven successive months among China's real estate enterprises.

Due to the favorable news on its sales performances, on 7 November, Evergrande stock opened with a high price and rocketed 10.1% to HKD3.91. By stock closing in the afternoon, the price of Evergrande increased by HKD0.33, and closed at HKD3.88, taking the lead in the HK stock market with 9.3% growth. Trading volume accounted for 300 million, ranking second among real estate stocks and fifth among HK stocks. Trading value amounted to HKD1.132 billion, ranking first among real estate stocks and fifth among HK stocks.

This year, Evergrande displays mastery of the market trends and has developed fast, according to its sales target since the beginning of the second quarter, and kept its sales volume increasing steadily. In both the second and third quarters, the Group fulfilled one third of its annual plan each. To prepare for the prime seasons of "Gold September" and "Silver October," Evergrande adjusted its sales plan and set a rational quantity plan for the newly launched goods. With its high performance-to-price ratio, Evergrande won acceptance by the market and has achieved a sales volume far beyond its last highest sales record of RMB10,370,000,000 in May. The sales in October alone covered 18% of the annual plan. Since January to October, Evergrande has achieved total sales of RMB72,830,000,000, which covers 91% of its annual plan. That is to say, with its high-quality products and adequate reservation of projects, it's promising for Evergrande to realize its annual goal of RMB80 billion a month earlier than initially planned, and even over fulfill its annual goal in such a market where the rigid demand is robust.

Data shows that Evergrande has an outlay covers all the provinces and autonomous regions except Taiwan, i.e., over 200 projects in more than 120 cities, which enables the Group to be a top real estate enterprise that owns the largest construction areas and covers the largest area. In the end of October, 168 of the projects were for sale, which covers 77% of the whole projects and is 1.4 times of the 121 for the same period last year. The sales made in second-tier cities and third-tier cities covers 97% of all sales, which proves the success of its strategy on layout and democratic development.

According to analysts, in today's macro environment in which the government keeps controlling the property market and the investment market of property continues to shrink, the rigid demand for buying a first suite or an improving one becomes robust and the mainstream of the market. It is the strategy of coping with the market trends and making a small profit and quick return, the mode of developing according to the market trend and policies, along with its clear orientation and products of high performance-to-price ratio, which enables Evergrande to win in a market of robust rigid demand and achieve an outstanding performance.

SOURCE Sina Leju