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China Overseas Land H1 core profit up 16 pct, raises FY sales target
August 22, 2016 / 5:00 AM / a year ago

China Overseas Land H1 core profit up 16 pct, raises FY sales target

HONG KONG, Aug 22 (Reuters) - China Overseas Land & Investment, the country’s sixth-largest developer by sales value, said on Monday its first-half core profit rose 15.8 percent on robust gains in home prices, especially in bigger cities.

The state-owned homebuilder said in a statement it raised its full-year sales target by 17 percent to HK$210 billion ($27.1 billion), benefiting from an improving property market and the acquisition of the residential real estate business of conglomerate CITIC earlier this year.

Its core profit, which excludes revaluation gains of its investment property portfolio, climbed to HK$15.8 billion ($2.04 billion) during the period.

Net profit rose 20.6 percent to HK$19.7 billion, while revenue was up 20.5 percent to HK$78.2 billion.

“It is expected that there will be additional policy supports on the development of the property market by the Chinese Government and the property market in China will improve moderately,” the company said.

Before the results announcement, shares of China Overseas Land eased 1.3 percent, compared to a 0.3 percent fall in the broader Hong Kong stock market.

Top rival China Vanke said on Sunday its net profit climbed 10 percent to $804 million.

Home price rises in China’s biggest cities showed signs of easing in July, adding to concerns that one of the economy’s key growth drivers is losing steam but offering some relief for policymakers worried about property bubbles.

Analysts expected more second-tier cities would roll out new tightening policies following Suzhou and Nanjing last week, as land and home prices continued to hit record levels. ($1 = 7.7531 Hong Kong dollars) (Reporting by Clare Jim; Editing by Muralikumar Anantharaman)

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