Equity Analysis /
China

CN : Property - Overall - Developers’ Jun sales likely rose 47% mom

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

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    Contributors
    Steven MAK
    Will Chu
    CGS-CIMB
    1 July 2022
    Published byCGS-CIMB

    Developers’ Jun 2022 sales likely jumped by 47% mom, much stronger than their c.10% guidance at our conference in mid-Jun. SOE developers’ sales were particularly strong (60-135% growth), while private quality developers (e.g. Longfor) also outperformed their peers. We expect developers’ sales in 2H22F to recover on 1) strong policy support, 2) more project launches, and 3) lower base in 2H21. Maintain OW on strong policy support and low valuation. We like CR Land and COLI among SOEs, and Longfor, CG and CIFI among non-SOEs.