Evergrande's Sales Amount in the First Quarter Achieved 19.8 Billion Yuan, with Increases on the Year-on-year and Month-on-month Basis

BEIJING, April 12, 2011 /PRNewswire-Asia/ -- In the past quarter, affected by a series of macro-control policies such as Housing Property Tax, Purchase Restriction Order and Loan Restriction Order, most Chinese real estate enterprises had decline of performance. However, Evergrande, developing in the second and third-tier cities for a long term, continued to create outstanding performance in terms of the sales amount and the sales area with double increases on the year-on-year and month-on-month basis in the weak market by virtue of its advanced strategic layout and strategic advantage.

On April 12, according to the sales performance of March released by Evergrande in Hong Kong, Evergrande achieved the contracted sales amount of 5.52 billion yuan, and the contracted sales area of 764,000 square meters. Thus, Evergrande's accumulative sales amount in the first quarter was 19.8 billion yuan, ranking the second place throughout the country, with an increase of 135.9% compared to that in the same period of 2010, which was 8.39 billion yuan; the accumulative sales area was 2.857 million square meters, with an increase of 117.2% compared to that in the same period of 2010, which was 1.315 square meters; and the accumulative average selling price was 6,932 yuan / square meter, with an increase of 8.6% compared to that in the same period of 2010, which was 6,382 yuan / square meter.

In the face of the adverse market environment and the continual macro-control, Evergrande still can keep the growth momentum on the year-on-year and month-on-month basis, indicating Evergrande's strong team executive force and forward-looking strategic advantage. According to the data, the 4 projects newly launched by Evergrande in March are located in the third-tier cities, and the total sales amount of the full month is 800 million yuan with excellent market performance, indicating Evergrande's success in the strategy of layout in the second and third-tier cities once again.

Due to the reasonable layout, most of the areas where Evergrande's projects are located do not belong to the hotspot areas under macro-control. At present, Evergrande has developed in 62 cities throughout the country, with the third-tier cities accounting for 63%, which are basically not affected by the purchase restriction policy. Among the 112 projects owned by Evergrande, 39.3% of them are located in the third-tier cities without the purchase restriction policy. The management of Evergrande said that it was planned that more than 30 projects not launched yet in the third-tier cities would be launched successively. It is thus not difficult to imagine that under the macro-control of "Purchase Restriction Order", Evergrande's strategic layout in the non-hotspot cities and areas will make the Company continue keeping the steady growing momentum.

In view of Evergrande's outstanding sales performance and steady operating status, the international investment banks think highly of Evergrande in the recent research reports. The well-known investment banks such as Morgan Stanley and Goldman Sachs have announced to include Evergrande into the preferred stock rank. Goldman Sachs rendered the Evergrande stock the target price of HKD 6.44. In addition, Haitong International said in the research report, from the view of current market value, the share price of Evergrande at present was only equivalent to 6 times of PE ration in 2011, and the appraised value was attracting, so it maintained the BUY rate. In particular, as of March 29, the share price of Evergrande has marched higher, taking turns to create the highest record since its listing for 17 months. By April 8, the highest share price of Evergrande had skyrocketed to HKD 5.15, with the rebound up to 181.4% compared to the recorded minimum value.

SOURCE Sina Leju

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