Yanlord Land

[behappyalways]

not vested


Disclosure of Interest/ Changes in Interest of Substantial Shareholder(s)/ Unitholder(s)::Disclosure of Interest/ Changes in Interest of Substantial Shareholder
http://infopub.sgx.com/FileOpen/29-05-2 ... eID=353976

[winston]

not vested

Aug/Sep sales for Yanlord came in better-than-expected at 5- 10% higher ASPs.

New launches in Shanghai and Nanjing were well received.

These may lead to an upside in its 2016/2017 earnings. The strong sales momentum is likely to extend into 2016.

We believe i2016 sales growth will be supported by later phases of existing projects which have been selling well in 2015.

Aberdeen has reduced its holding from 10.0% to 7.0% since last year. Although the overhang may affect near-term share performance, we believe its valuation is undemanding given its improving sales outlook.

Yanlord is trading at a 47% NAV discount, 7.2x FY16 PE and 0.5x P/BV (vs its historical 10.6x PE and 1.2x P/BV).

We maintain our BUY rating with a TP of S$1.34 based on 9x FY16 PE, benchmarking its average PE since 2014.

Source: DBS

[winston]

not vested

Buoyed by strong upgrader market

Strong 10M15 sales momentum continued in Nov; full-year sales may reach Rmb25-26bn
Management is looking to raise ASP further for upcoming new launches
Seeking to replenish land through JV
Maintain BUY, TP S$1.35

Maintain BUY. Yanlord is trading at 46% NAV discount, 7.0x 16 PE and 0.5x P/BV (vs its historical 10.5x PE and 1.2x P/BV).

We believe the valuation is undemanding given the good sales outlook for its upgrader products.

We maintain BUY, TP S$1.35 based on unchanged 9x FY16 PE.

At A Glance
Issued Capital (m shrs) 1,949
Mkt. Cap (S$m/US$m) 2,046 / 1,441
Major Shareholders
Sheng Jian Zhong (%) 70.4
EE-Chao Wee (%) 7.0
Aberdeen Asset Management (%) 7.0
Free Float (%) 29.6
3m Avg. Daily Val. (US$m) 1.2

Source: DBS

[winston]

not vested

We introduce Yanlord as the latest addition to our model portfolio given its strong positioning in the tier-one and tier-two cities of China.

It boasts a strong brand name especially in the high-end market segment along with a solid balance sheet and high-quality investment properties portfolio.

We expect
1) stellar results for the subsequent quarters,
2) redemption of the high-yield bond (10.6%, SGD400m) and new site acquisitions possibly in the area of Suzhou and Tianjin to be the strong catalysts for the stock price.


Source: RHB

[winston]

not vested

Yanlord Group had another strong month of sales in November, with contracted sales rising 45.7% yoy to RMB3.8bn on sales area of 121,400 sqm GFA.

Year-to-date, the group has chalked up contracted sales of RMB26bn (+152%), with an additional RMB6.2bn in subscription sales pending conversion at end 2015.

The solid pre-sales achieved to date is way ahead of the earlier RMB18bn sales target that the group had set for 2015.
​
While the group has yet to set its FY16 sales target, management is bullish on take-up rates given the strong response to its recent launches in Shanghai, Nanjing and Tianjin.

Gross margin is also expected to inch upwards as recent launch prices have been raised to reflect the strong demand, coupled with upcoming launches of new phases in existing projects which usually command better prices.
​
Yanlord’s net gearing has also declined sharply from 45.3% as at end-2014 to 22.8% on cash collections. The group intends to landbank in cities where its sales have been strong, and in recent years have shortened its speed to market from land acquisition to project launches.

At current price, the stock trades at a steep 50% discount to its NAV. We remain bullish and have added the stock to our model portfolio top picks.

Source: RHB

[winston]

not vested

Yanlord Group (YLLG SP) had an exceptionally good year in 2015, with its contract sales growing by 120% from RMB12.7bn in 2014 to RMB28bn in 2015. Some of its subscription sales pending conversions, moreover, will only be booked in 2016.

By contribution, the majority of its sales come from Shanghai (45%), Nanjing (20%), Suzhou (10-15%) and Shenzhen (8-10%).

The group saw strong take-up rates for its recent launches of Yanlord on the Park (Shanghai), Yanlord Yangtze Riverbay Town (Nanjing), Yanlord Lakeview Bay (Suzhou) and Yanlord Sunland Gardens (Shanghai) and project ASPs have been raised across the board to reflect the strong demand.

Coupled with a quality, low-cost landbank, this will drive gross margin expansion moving forward.

Management is looking at a similar level (RMB28bn) 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%.

At current price, the stock trades at a steep 50% discount to its NAV and more than 60% discount to its RNAV.

The stock remains a conviction pick in our model portfolio.

Source: RHB

[tonylim]

YANLORD 1H 2016 NET PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY SURGES 213.1% TO RMB584.1 MILLION ON STRONG MARKET DEMAND FOR ITS PRIME DEVELOPMENTS

Underscored by healthy home buyer demand in the PRC and robust pre-sale delivery, 1H 2016 revenue rose 206.2% to RMB10.257 billion, while profit attributable to owners of the Company rose 213.1% to RMB584.1 million in 1H 2016.

Healthy market sentiments in the PRC propelled the Group’s pre-sale accumulation in 1H 2016. Pre-sale of properties and car parks in 1H 2016 rose 55.3% to RMB17.128 billion from RMB11.027 billion in 1H 2015 while accumulated pre-sales pending recognition as at 30 June 2016 was RMB28.884 billion.

Robust sales collection underscores the Group’s healthy financials which had a net debt to equity gearing ratio of 1.9% as at 30 June 2016. Cash and cash equivalents position was RMB18.955 billion as at 30 June 2016. Fully diluted earnings per share in 1H 2016 rose 213.2% to 29.97 Renminbi cents.

To augment the Group’s future development, Yanlord has announced the acquisition of stakes in seven land parcels across first and second tier cities of China with total GFA of approximately 1.78 million sqm since the beginning of 2016.

[winston]

not vested

Yanlord Land has been trading above its upward sloping 20-Day Moving Average which is a good sign.

However, we have to be careful as the recent price action broke the support level of 1.395.

If a bearish breakout is accompanied by high volume, this indicates the unwillingness of a large pool of traders to hold on to the stock as selling pressure mounts at the support level.

This bearish breakout of Yanlord Land was accompanied by a lower than average volume which may give a glimmer of hope, however one has to be monitor carefully the price action in the coming sessions.

Source: UOBKH

[winston]

not vested

YANLORD'S 3Q EARNINGS SURGE 10-FOLD TO $117 MIL

By Jude Chan

SINGAPORE (Nov 14): Yanlord Land Group posted earnings of RMB 564.2 million ($116.7 million) in 3Q16, a 10-fold increase from RMB 55.7 million in the corresponding quarter last year.

Revenue surged 84% to RMB 5.5 billion in the quarter ended Sept, from RMB 3.0 billion in 3Q15.

In a filing to SGX on Monday, Yanlord Land says this was mainly due to significant increases in gross floor area delivered to customers.

Two new projects – Oasis New Island Gardens (Phase 1) in Nanjing and Yanlord Marina Peninsula Gardens (Phase 1) in Zhuhai – were successfully delivered in 3Q16, accounting for 47.5% and 18.0% respectively to the Group’s 3Q16 gross revenue on sales of properties.

Revenue also increase due to higher average selling price per square metre as a result of a change in the composition of product mix delivered to the customers to include a greater portion of higher-priced projects.

Accordingly, cost of sales, which mainly comprises land, construction and capitalised borrowing costs, increased by 76% to RMB 4.0 billion in 3Q16, from RMB 2.3 billion in 3Q15.

Other operating income, which mainly included fair value gain on investment properties, net foreign exchange gain and interest income, grew to RMB 105.4 million in 3Q16, compared to RMB 37.0 million recorded in the same period last year.

Gross profit doubled to RMB1.5 billion in 3Q16, from RMB 714.2 million in 3Q15.

Gross profit margin grew to 27.2% in 3Q16 compared with 23.9% in the same quarter last year.

Administrative expenses fell 62% to RMB 115.8 million in 3Q16, from RMB 301.7 million in 3Q last year.

Cash and cash equivalents stood at RMB 16.8 billion as at Sept 30, 2016.

Yanlord Land says it “continues to witness steadfast buyer demand for its high-quality residential developments” on the back of “healthy demand for residential properties” in China.

Volatilities in the global financial markets and a clampdown on austerity by Beijing may “slow the rapid growth of new land tender prices,” the Group says, adding that this could “help to maintain a stable and sustainable development of the property sector over the longer term”.

Yanlord Land closed 2.5% lower at $1.35 on Monday.

Source: The Edge

http://smr.theedgemarkets.com/article/y ... 4-87358173

[winston]

not vested

Yanlord Land Group (YLLG SP): BUY
Market Cap: US$2,077m | Average Daily Value: US$1.5m
Last Traded Price: S$1.50; Price Target: S$2.21 (Upside 47%) (Prev S$1.46)

Strong sales come to fruition
Strong FY16 results with decent earnings and DPS improvement
Management plans to pace sales in 2017 to maintain margin
Continued efforts in land acquisitions in key Tier 1/2 cities to support growth

Maintain BUY due to the strong earnings and dividend outlook

Maintain BUY on its strong earnings and dividend outlook. Yanlord reported strong FY16 results from high sales delivery in Shanghai and Nanjing at better gross margin.

Around 70% of the Rmb26.5bn unrecognised sales will likely be delivered in FY17, giving it a high revenue visibility. FY16 margin rebounded to 31% from 28% in FY15. This margin recovery should continue in FY17 with the strong ASP growth in recent and 2016 sales.

Given the decent property sales and earnings, management raised dividend payout ratio to 15% from 10% in FY15 which boosted dividend yield back to 3% level after share price shot up by 50% since January 2016.

Conservative 2017 sales target, supported by ample saleable resources. Being cautious on the tight price control measures in key Tier 1/2 cities, management plans to pace sales in 1H17 to keep margin and set a conservative sales target of Rmb32bn (5% below the Rmb33.6bn sales in FY16), with 25% growth in saleable resources to c.Rmb50bn from Rmb40bn in FY16.

Despite local government’s tight price control, management targets to maintain its contracted ASP given its profitability-focused strategy. YTD sales are muted at c.Rmb1.5bn due to limited new launches after CNY, but sales should pick up in March when project launches in Nanjing and Tianjin resume.

Continue land replenishment to support mid-term growth. Yanlord plans to spend c.Rmb15bn on land banking this year, on top of the c.Rmb18bn spent in 2016. With a strong balance sheet (16% net gearing and Rmb18bn cash-on-hand), we believe the acquisition budget is reasonable.

While management will maintain its focus on key Tier 1/2 cities for new projects, it mainly acquires new projects through M&A or JV with other investors to lower the average land costs. Apart from that, Yanlord has also invested in primary development in Chengdu, Nanjing and Zhongshan which could help source more quality lands at reasonable costs.

Valuation:
We maintain our BUY rating on Yanlord with a higher TP of S$2.21 based on 8.9x FY17 PE, which is benchmarked to its historical average PE since 2014.

Key Risks to Our View:
Land acquisition, especially in key tier1/2 cities, will face higher competition that could drag up land acquisition costs.


Source: DBS