德意志银行-xx地产-china property 1h17 results preview,strong earnings growth with margin improvement-20170725-deutschebank.pdfVIP

Deutsche Bank Markets Research Asia Industry Date China China Property 25 July 2017 Property Property Industry Update Jeffrey Gao, CFA Jason Ching, CFA 1H17 results preview: strong earnings Research Analyst Research Analyst (+852 ) 2203 6256 (+852 ) 2203 6205 growth with margin improvement jeffrey.gao@ jason.ching@ Strong 1H17F results with core profits up 25% overall Stephen Cheung, CFA We expect China property developers to deliver strong 1H17F results overall, Research Analyst though with divergence: 1) earnings up 25% overall with one-third of (+852 ) 2203 6182 companies to report more than 50% core profits growth, but one-third to report stephen-a.cheung@ single-digit growth only; 2) gross margin to expand by ~2 ppt. with significant price rises over past 12 months; 3) net gearing to rise 5-10% thanks to Foo Leung aggressive land acquisitions/MA during 1H. We expect developers to raise Research Associate their full-year sales targets during 1H or beat their original target at year-end, given they had completed 56% by June on average. (+852 ) 2203 6239