11M12 contracted sales and GFA sold meet 99% and 99.8% of targets respectively C C Land reported its November 2012 contracted sales performance today, monthly contracted sales value was reported to be RMB936mn, up 205% YoY and up 15% MoM. Monthly contracted GFA sold was 124ksqm, up 187% YoY and up 26% MoM. Contracted ASP was RMB7,548psm, up 6% YoY and down 8% MoM. For Jan-Nov 2012, contracted sales value was RMB6.737bn, up 28% YoY. Contracted GFA was 875ksqm, up 41% YoY. Contracted ASP was RMB7,548psm, down 11% YoY. C C Land has essentially achieved full-year contracted sales and GFA target of RMB6.8bn and 877ksqm.
In addition, at end-Nov, C C Land also has subscription sales of RMB1.271bn which will be converted into contracted sales within coming months. Strong Nov sales from positive responses at 2 newly launched projects In Nov, C C Land launched 2 new projects, namely Phase 3 of Phoenix County in Chongqing and Phase 4 of Brighton Place and Plaza in Chengdu. Both projects received overwhelming responses from homebuyers with 100% and 90.4% take-up rate respectively on their first day of launch. Both sales fetched a total of RMB263mn in subscription sa les on their respective launch day, which provided quite a large boost to this month's contracted sales performance. These overwhelmingly positive responses from buyers of both projects and the November contracted sales results reaffirms our view that C C Land's turnaround story is continuing st rong, it also demonstrates C C Land's pricing and sales execution ability and provides the company with a proven track record.
2013 is key focus for management now
By end-October, C C Land had achieved its 2012 sales target. Management’s key focus is now on sustainable growth in 2013. In 2012, the company had new construction starts of 2.1msm – same as in 2011; hence, unlike many other non-state-owned developers, there is no new start reduction. Currently, it has about 4msm of GFA under constructi on, which represents one-third of its current landbank. Our analysis shows that with its high level of starts in 2011 and 2012, C C Land should have about RMB20bn of saleable resources for 2013, thus supporting its continued growth in 2013 and 2014.
Convincing valuation; currently at 71% NAV discount and 0.5x 2013E P/B C C Land trades at 6.8x 2013E P/E, and our 2012E earnings were effectively fully recognised. Our raised TP of HK$4.75 is based on a 50% discount to DB NAV of HK$9.50, given land bank acquisitions in Chongqing and Chengdu this month. Risks stricter-than- expected tightening, weak er-than-expected sales; econ volatility.
11M12 contracted sales and GFA sold meet 99% and 99.8% of targets respectively C C Land reported its November 2012 contracted sales performance today, monthly contracted sales value was reported to be RMB936mn, up 205% YoY and up 15% MoM. Monthly contracted GFA sold was 124ksqm, up 187% YoY and up 26% MoM. Contracted ASP was RMB7,548psm, up 6% YoY and down 8% MoM. For Jan-Nov 2012, contracted sales value was RMB6.737bn, up 28% YoY. Contracted GFA was 875ksqm, up 41% YoY. Contracted ASP was RMB7,548psm, down 11% YoY. C C Land has essentially achieved full-year contracted sales and GFA target of RMB6.8bn and 877ksqm.
In addition, at end-Nov, C C Land also has subscription sales of RMB1.271bn which will be converted into contracted sales within coming months. Strong Nov sales from positive responses at 2 newly launched projects In Nov, C C Land launched 2 new projects, namely Phase 3 of Phoenix County in Chongqing and Phase 4 of Brighton Place and Plaza in Chengdu. Both projects received overwhelming responses from homebuyers with 100% and 90.4% take-up rate respectively on their first day of launch. Both sales fetched a total of RMB263mn in subscription sa les on their respective launch day, which provided quite a large boost to this month's contracted sales performance. These overwhelmingly positive responses from buyers of both projects and the November contracted sales results reaffirms our view that C C Land's turnaround story is continuing st rong, it also demonstrates C C Land's pricing and sales execution ability and provides the company with a proven track record.
2013 is key focus for management now
By end-October, C C Land had achieved its 2012 sales target. Management’s key focus is now on sustainable growth in 2013. In 2012, the company had new construction starts of 2.1msm – same as in 2011; hence, unlike many other non-state-owned developers, there is no new start reduction. Currently, it has about 4msm of GFA under constructi on, which represents one-third of its current landbank. Our analysis shows that with its high level of starts in 2011 and 2012, C C Land should have about RMB20bn of saleable resources for 2013, thus supporting its continued growth in 2013 and 2014.
Convincing valuation; currently at 71% NAV discount and 0.5x 2013E P/B C C Land trades at 6.8x 2013E P/E, and our 2012E earnings were effectively fully recognised. Our raised TP of HK$4.75 is based on a 50% discount to DB NAV of HK$9.50, given land bank acquisitions in Chongqing and Chengdu this month. Risks stricter-than- expected tightening, weak er-than-expected sales; econ volatility.
