Zhenro Properties Group

Zhenro Properties Group Ltd. Zhenro Properties Group Limited is an investment holding company principally engaged in the sale of properties. Along with its subsidiaries, the Company provides sales of properties, property leasing business, provision of commercial property management services, and sales of goods and provision of design consultation services.
  • Ticker6158
  • ISINKYG9897E1098
  • ExchangeHong Kong Stock Exchange
  • SectorReal Estate Investment & Services
  • CountryCayman Islands

Analysts

UOB
Nick Liu Sunliang ...
  • Shaun Tan

Property - 1H19 results round-up: Rising pressure.

Since revenue of property developers has a lag of 2-3 years from pre-sales to carryover, most of the project settlements in 1H19 were sold in 2016-17. Therefore, earnings of property developers in 1H19 were still eye-catching. However, with the further tightening of policies and financing in the property sector, pressure on sales and investment will increase and impact the cash flow of developers. Maintain MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: Valuation of some developers will decline.

The decision from Politburo meeting emphasised continued policy tightening, and we believe the real estate industry will find it difficult to obtain a dividend policy in the short term. However, we still recommend paying attention to real estate developers whose sales will keep growing in the industry, as sales data now represents operating profit 2-3 years later. Maintain MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: 1H19 results preview.

Amid expectations of a decline in investment, China’s policy fine-tuning will play a key role in stabilising the market. We expect the profit gap between housing developers to widen and industry concentration to increase significantly when total sales volumes show a downtrend. At the same time, the sector’s valuations will fall, but leading developers’ valuations will rebound. Downgrade to MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: Performances will continue to improve.

Last week (14-20 July), 32,842 new houses were sold in the 30 cities we monitor, down 11.46% wow. Transaction area totalled 3.49m sqm, down 10.17% wow. New inventory in 15 cities increased 9.42% wow. Transaction-to-new-launch ratio reached 0.97x, lower than the 1.30x in the week of 7-13 July. Leading developers are trading at 4.12-9.45x 2019F PE and at a 22.7-67.5% discount to last week's NAV. Maintain OVERWEIGHT.

UOB
Nick Liu Sunliang

China Property - Weekly: Financing channel may not tighten further.

Last week (7- 13 July), 37,011 new houses were sold in the 30 cities we monitor, down 6.0% wow. Transaction area totalled 3.87m sqm, down 6.1% wow. New inventory in 15 cities increased 61.3% wow. Transaction-to-new-launch ratio reached 1.30x, higher than the 0.75x in the week of 30 June-6 July. Leading developers are trading at 4.1-9.2x 2019F PE and at a 21.4-65.2% discount to NAV last week. Maintain OVERWEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property: Embracing megacity clusters. OVERWEIGHT

With the government’s efforts to foster and develop city clusters in China, we see huge housing demand in core metroplolitan areas arising from urbanisation and cross-regional population flows into those areas. Naturally, the YRD and GBA will remain the main magnets for population in the future, given their vast potential. Urbanisation rates in YRD (68.5%) and GBA (84.4%) are notably higher than in the rest of China (59.6%). Maintain OVERWEIGHT with CIFI, Ronshine and Times China as top BUYs.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

Property - 1H19 results round-up: Rising pressure.

Since revenue of property developers has a lag of 2-3 years from pre-sales to carryover, most of the project settlements in 1H19 were sold in 2016-17. Therefore, earnings of property developers in 1H19 were still eye-catching. However, with the further tightening of policies and financing in the property sector, pressure on sales and investment will increase and impact the cash flow of developers. Maintain MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: Valuation of some developers will decline.

The decision from Politburo meeting emphasised continued policy tightening, and we believe the real estate industry will find it difficult to obtain a dividend policy in the short term. However, we still recommend paying attention to real estate developers whose sales will keep growing in the industry, as sales data now represents operating profit 2-3 years later. Maintain MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: 1H19 results preview.

Amid expectations of a decline in investment, China’s policy fine-tuning will play a key role in stabilising the market. We expect the profit gap between housing developers to widen and industry concentration to increase significantly when total sales volumes show a downtrend. At the same time, the sector’s valuations will fall, but leading developers’ valuations will rebound. Downgrade to MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: Performances will continue to improve.

Last week (14-20 July), 32,842 new houses were sold in the 30 cities we monitor, down 11.46% wow. Transaction area totalled 3.49m sqm, down 10.17% wow. New inventory in 15 cities increased 9.42% wow. Transaction-to-new-launch ratio reached 0.97x, lower than the 1.30x in the week of 7-13 July. Leading developers are trading at 4.12-9.45x 2019F PE and at a 22.7-67.5% discount to last week's NAV. Maintain OVERWEIGHT.

UOB
Nick Liu Sunliang

China Property - Weekly: Financing channel may not tighten further.

Last week (7- 13 July), 37,011 new houses were sold in the 30 cities we monitor, down 6.0% wow. Transaction area totalled 3.87m sqm, down 6.1% wow. New inventory in 15 cities increased 61.3% wow. Transaction-to-new-launch ratio reached 1.30x, higher than the 0.75x in the week of 30 June-6 July. Leading developers are trading at 4.1-9.2x 2019F PE and at a 21.4-65.2% discount to NAV last week. Maintain OVERWEIGHT.

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