Surging Yanlord sets sights on key cities for more momentum

Its profit skyrocketed by 179.8% to RMB127m in 3Q.

The property development firm has booked steady results lately, and it aims to stimulate more growth as it logically intends to focus in cities where its sales have been strong.

According to RHB Research, it has also in recent years shortened its speed-to-market-from land acquisition to project launch.

“For 9M15, the group has achieved contracted sales of RMB20.3bn, above its full year target of RMB18bn. Coupled with subscription sales pending conversion as well as strong reception to its launches in Nanjing and Shanghai in November, full year sales is likely to hit RMB25-26bn,” RHB Research said.

Meanwhile, gross margin is also expected to inch upwards for Yanlord, as recent launch prices have been raised to reflect the strong demand. This is coupled with upcoming launches of new phases in existing projects, and these usually command better prices, according to RHB Research.

“Yanlord’s net gearing has also declined sharply from 45.3% as at end-2014 to 22.8% on cash collections,” they added.