Yanlord debunks China jitters with exceptionally strong sales

It will book record profits in 2016.

Mainboard-listed Yanlord Group remains well-poised to book extremely high growth despite fears of a sharp slowdown in China, according to a report by RHB.

RHB noted that Yanlord had an exceptionally good year in 2015, with its contract sales growing by 120% from RMB12.7bn in 2014 to RMB28bn in 2015.

Yanlord is also looking at a similar level of contract sales for 2016, and will selectively landbank in key cities where its sales have been moving briskly.

“We see its net profit growing at a CAGR of 30% over the next 2 years as it delivers on its sales pipeline. Due to healthy cash collections, net gearing has declined sharply from 45.3% as at end-2014 to 22.8%. The group saw strong take-up rates for its recent launches. Coupled with a quality, low-cost landbank, this will drive gross margin expansion moving forward,” said RHB.