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