Longfor sets 200 billion yuan sales target as core profit rises by a quarter
The Chinese developer saw net profit jump 38 per cent to 12.6 billion yuan in 2017, while total revenue grew 31 per cent to 72.08 billion yuan
Longfor Properties, China’s eighth largest developer by sales, set its 2018 sales target at 200 billion yuan after posting a 25.9 per cent increase in core net profit last year.
The Beijing-based developer saw core net profit, which excludes valuation gains and foreign exchange losses, jump to 9.77 billion yuan in 2017, on the back of a 77.1 per cent jump in contracted sales to 156.08 billion yuan from 88.14 billion yuan a year earlier.
“We currently have saleable properties worth about 300 billion yuan,” said Shao Mingxiao, executive director and CEO, during a briefing on the company’s annual results on Friday. “We are hoping to maintain our place in the top 10.”
Shao said that in the first two months of this year the company has achieved contracted sales of 29 billion yuan and expects to see that figure climb to 44 billion yuan by the end of the first quarter.
We expect the firm to maintain 15 per cent to 20 per cent annual growth in the next three years
Net profit jumped 37.7 per cent to 12.6 billion yuan in 2017, from 9.15 billion yuan a year earlier while total revenue grew 31.5 per cent to 72.08 billion yuan.
“We expect the firm to maintain 15 per cent to 20 per cent annual growth in the next three years and the contribution from the firm’s investment properties to continue to increase,” said Kris Li at Shanghai-based SWS Research.
