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China Evergrande Group (formerly: Evergrande Real Estate Group) (3333.HK)
28-03-2019, 02:50 PM.
Post: #31
RE: China Evergrande Group (formerly: Evergrande Real Estate Group) (3333.HK)
Evergrande Founder's $1 Billion Bet on Firm's Bonds Pays Off
> Company’s 2022, 2023 bonds beat real estate peers in returns
> Hui’s net worth increased by 10.9% this year to $35.7 billion

Bloomberg News
March 28, 2019, 4:30 AM GMT+7 Updated on March 28, 2019, 9:15 AM GMT+7

It might have seemed like a bold move when the billionaire founder of China Evergrande Group spent $1 billion of his own money buying the company’s bonds five months ago. Now his bets are handing him handsome returns that beat many asset classes.

Hui Ka Yan, who is chairman at Evergrande, bought more than half of the company’s $1.8 billion bond offering in October, signifying his "support to and confidence in the Group" when some of its dollar notes had plunged to unprecedented lows due to concern over its debt.

The purchase, unusual for an owner of a Chinese property developer, proved to be rather lucrative. The 2022 and 2023 notes have surged to 110 and 111 cents on the dollar respectively after Hui purchased $500 million of them each at par. Hui’s gained more than 17 percent on each tranche, according to Bloomberg-compiled data.

By comparison, high-yield dollar bonds from the country’s real estate sector have returned 13 percent over the same period, according to an ICE BofAML index. The dividend yield on Evergrande shares was less than 5 percent in the past 12 months. Hui said he hasn’t sold any of the $1 billion bonds he bought in October when asked by Bloomberg News in an earnings presser in Hong Kong on Tuesday.

Evergrande’s dollar bonds, along with its peers’, benefited from a return of investor confidence at the beginning of this year on their cheap valuations and the stimulus measures from Chinese authorities. Cities in the country have introduced various easing measures including relaxing price curbs since late last year to boost property markets.

More details in https://www.bloomberg.com/news/articles/...s-pays-off
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28-08-2019, 07:06 PM.
Post: #32
RE: China Evergrande Group (formerly: Evergrande Real Estate Group) (3333.HK)
China Evergrande first major mainland developer to report profit decline as cooling measures hit sales
* The country’s third-largest property developer reports its first profit decline since H1 2016
* Sales ease 7.4 per cent in the first half as cooling measures bite

Pearl Liu  
Published: 6:56pm, 28 Aug, 2019

China Evergrande, the country’s third largest property developer by sales, posted a 45 per cent plunge in first-half core profit on Wednesday, becoming the first among the mainland’s top developers to report a decline in earnings.

The sharp fall in core earnings – its first drop since the first half of 2016 – came after the central government rolled out a slew of cooling measures to curb property price growth earlier this year.

Interim core profit came in at 30.35 billion yuan (US$4.2 billion), while revenue dropped 24.4 per cent to 226.98 billion yuan in the comparable period.

No interim dividend was recommended.

Contracted sales in the first six months eased 7.4 per cent year on year to 281.81 billion yuan, accounting for less than half the company’s 600 billion yuan annual sales target. For the six months to June, it said average selling price increased to a historical high of 10,756 yuan per square metre.

Despite the sales shortfall, the company said it was confident that it could achieve its annual sales target of 600 billion yuan.

“We can definitely meet the target as 74 million square metres will be put on sale in the next half,” said Xia Haijun, vice-chairman and president of China Evergrande. “If we manage to sell 40 per cent of this area, the sales target will be met.”

Evergrande’s net gearing ratio, a measure of equity to debt, stood at 152.1 per cent, up from 151.9 per cent at the end of 2018, up 24 percentage points from six months earlier, according to a company filing to the Hong Kong stock exchange.

Xia had pledged last year to cut the net gearing ratio to 100 per cent by the end of 2019 and to 70 per cent by 2020.

More details in https://www.scmp.com/business/article/30...it-decline
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