Yanlord guns for wider Shanghai exposure

It plans to launch Nanjing Oasis New Island Gardens in 3Q17.

Following strong half-year results, property group Yanlord is eyeing to increase its exposure in Shanghai.

DBS Group Research said Yanlord managed to lock-in RMB15b contracted sales in July, accounting for 47% of its sales target.

Whilst this is slower than the sector average of 63%, Yanlord is expecting continued growth as it plans to launch Shanghai Yanlord on the Park and Nanjing Oasis New Island Gardens in 3Q17. The company can obtain sales permits at RMB 110,000 psm and RMB 36,000 psm respectively.

"The company is trying to negotiate with the government for higher selling prices, and is confident to achieve a high sell through rate at the government’s guided price. Looking into
2018, the management would like to achieve y-o-y growth but are more confident that margins can be maintained," analyst Danielle Wang said.