Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
02007 COUNTRY GARDEN
RTNominal up0.485 +0.005 (+1.042%)
Research Report

28/09/2020 17:37

Chinese developers' recovery continues, but pressure remains

[ET Net News Agency, 28 September 2020] Moody's Investors Service said in a new report
that China's property developers will see their debt leverage and interest coverage
improve over the coming months as revenue growth outpaces debt growth.
"Solid contracted sales over the past 2-3 years will support revenue growth for the
developers we rate in 2020-21. Meanwhile, debt growth will slow significantly from the
high level in 2019, as many developers plan to slow down their debt-funded expansion as
regulators tighten controls on their access to debt funding," said Danny Chan, a Moody's
Assistant Vice President and Analyst.
Developers' weighted average revenue/adjusted debt will improve to 66%-72% in 2020-21
from 62% in the 12 months ended 30 June 2020 and 63% in full-year 2019. This improvement
comes as developers recognize revenue for the strong contracted sales in the past 2-3
years while controlling debt growth.
However, their gross profit margins are expected to decline, amid rising unit land costs
and property price controls by local governments. The weighted average margin will
contract to around 28% in 2020 and 2021 from 29% in the 12 months ended 30 June 2020 and
31% in 2019. The contraction will be largest for Baa-rated developers as they will deliver
fewer high-margin projects than in 2018-2019.
While liquidity declined slightly as of 30 June 2020 as a number of short-term
maturities came due, Moody's expects most rated developers should be able to refinance or
repay their upcoming maturities as capital markets have stabilized compared to the first
quarter of 2020.
Additionally, developers still have access to onshore and offshore capital markets,
although they will be subject to tighter scrutiny and will use their debt proceeds mainly
for refinancing. Low-rated developers (B3 or lower) will face higher refinancing risks
than their peers. (KL)

Remark: Real time quote last updated: 28/03/2024 18:00
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2024 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.