Easy access to funding is leading developers to take advantage of the government's stimulus plan which has lead to an increase in the purchase of residential plots in Beijing of 52%. Residential sales in china are up 70% year on year and mortgage loans are up 94% during this same period. The business climate in China is also on the way up by 8.5 points in the third quarter from the previous quarter.
China Housing & Land Development is the first and only Chinese real estate
development company traded on NASDAQ and will hold its annual meeting of stockholders on October 30, 2009 and will discuss the company's financial performance. The company is based in Xi'an and is a leading developer of residential properties in northwest China. Xiaohong Feng, Chief executive officer for China Housing and Land Development has stated "we are pleased with our third quarter sales results. Our performance was highlighted by strong sequential apartment unit sales and ASP growth in our JunJing II Phase two project."
Buyers are now able to take advantage of easily acquired loans, lower capital requirements, and looser lending conditions. Buyers have also been able to take advantage of a program where the employee opens a special account in a state owned bank. The employee must contribute 5% of his monthly salary, which is then matched by the employer and this money can only be used to purchase a residential property at below market-rate loans. 80 million workers have been in this program since 2004 and have saved $76 billion and are now ready to buy. Developers have been slow to respond to this surge in demand that began in 2009 and the door is now wide open for China Housing & Land to capitalize.
Zacks average brokerage recommendation is <font> Strong Buy </font> .
Growth rate Qtr (9/09) Otr (12/09) FY (12/09) FY
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CHLN announced its unaudited financial results for 2Q2009 ended June 30, 2009 For the quarter ended June 30, 2009, the Company's revenues were $22.6 million, an increase of 71.2% year-over-year from $13.2 million in 2Q2008, and ... an increase of 63.3% sequentially, from $13.8 million in 1Q2009. Gross profit for 2Q2009 was US $7.2 million, up 261.9% from $2.0 million in the same period of 2008, and up 66% sequentially from $4.3 million in 1Q2009.
Long CHLN
$3.74 (10/27/09)
