Chinese Real Estate Companies See Average Profit Rise of 23% in 2018
The latest round of performance results from Chinese real estate companies points to a robust rise in average profits in 2018.
A report from Centaline Group indicates that 76 listed real estate companies have released their annual reports for 2018, including 51 A-share companies and 25 Hong Kong-listed enterprises.
Nearly 70% of these companies have reported profits gains for 2018, for an average profit increase of 23%.
The average net profit rate of A-share real estate companies was 11.9% in 2018, for a slight decline compared to a reading of 12.1% of 2017.
China’s commercial housing sales floorspace breached the 1.7 billion square metre threshold for the first time in 2018, while the sales amount saw a YoY rise of 12.2%.
Vanke, Evergrande and Country Garden all saw daily profits of close to or in excess of 100 million yuan.
Vanke’s net profits attributable to shareholders were 33.77 billion yuan in 2018, for a YoY increase of 20.4%, and average daily profit of around 92.52 million yuan.
Country Garden’s net profits were 48.54 billion yuan in 2018, for a YoY rise of 68.8% and average daily profit of approximately 133 million yuan, while Evergrande’s net profits were 72.21 billion yuan, for a YoY surge of 106.4% and daily profits of around 198 million yuan.