With April Sales Volume Doubling to RMB8.19 Billion, Evergrande Has Become A Leader Among Chinese Real Estate Enterprises

BEIJING, May 7, 2012 /PRNewswire-Asia/ -- On May 7, Evergrande (OTC-Pink: EGRN) (the "Company") announced its April sales data. It achieved sales volume of RMB8.19 billion, with a month-on-month increase of 103.5% and a sales area of 1.38 million square meters, which was a month-on-month increase of 126.4%. By the date of announcement, the Company ranked first among Chinese real estate enterprises in terms of sales volume and sales area in April; and among real estate companies of equal scale, The Company ranked first in terms of month-on-month increases of rate of sales, volume and sales area.

From January through April 2012, Evergrande achieved accumulative contracted sales volume of RMB16.45 billion, and an accumulative contracted sales area of 2.679 million square meters. In the single month of April, the Company achieved the sales performance of one quarter, which met with the Company's expectation that sales volume would be lower at first and higher in the end and it is on track to meet its full-year sales target of RMB80 billion. According to insiders, in the face of adverse market conditions and continual macro-controls of the Chinese government, the Company had the ability to strongly increase sales volume in April, complying with its prior judgment and demonstrating that it had adjusted the pace of its own development. Furthermore, it has also seized upon opportunities in the land market this year to plan a land reserve and other respects, laying the foundation for the future development.

According to the report, in April, the Group launched 7 new projects, which are located in second- and third-tier cities, and achieved the sales volume of RMB1.3 billion, demonstrating the success of the Company's strategy in those markets. Evergrande increased the promotional strength of on-sale projects and the launching strength of new projects in April, so the number of on-sale projects accumulatively amounted to 143, and sales volume increased substantially on both a year-on-year and month-on-month basis. The Company plans to launch 8-10 new projects in May, and continues adhering to the strategy of fluctuating along with market changes. It can be predicted that under the current round of economic macro-control, the reasonable selling prices and layouts of Evergrande will enable it to continue the momentum of stable growth, so as to achieve its established sales target.

Previously, based on 2011's outstanding annual sales performance, steady operations and optimistic expectations of future growth, international investment banks thought highly of Evergrande. Credit Suisse, Citibank, Deutsche Bank and other international investment banks have selected Evergrande and other Mainland real estate shares as preferred shares. According to a recent report from Citibank, on the basis of expectation that the Company's sales volume in April would substantially increase to RMB7.5-8.0 billion, the bank has maintained Evergrande at a "Buy" rating, and regarded it as the preferred in the industry, with the target value of RMB6.23. Deutsche Bank has reiterated this rating and puts Evergrande at target value of RMB8.3, with a 20% discount based on the relative net asset value per share, reflecting the strong executive ability of the Company and its focus on second- and third-tier cities.

SOURCE Sina Leju