China Real Estate

Contract sales have been strong - unsold inventory is at a multi-year low Gross margins have been satisfactory - estimated 28% for projects under development 75Bn RMB (>$11Bn) Xinchuang Technology investment plan could transform the company. Leverage must decrease - ratings outlook is negative and XIN bonds are yielding 18% Property Management subsidiary is preparing … Continue reading Xinyuan Real Estate Update: Did you know about the 75Bn RMB investment plan?

Xinyuan Science & Technology Service (XSTS), the property management subsidiary of Xinyuan Real Estate, filed its 1H18 Report (LINK).  Even though XSTS shares are not yet trading publicly, the NEEQ listing provides visibility into the rapid growth of Xinyuan’s recurring revenues and income from this business.  Highlights: The company’s NEEQ listing was approved on 3/15/17 … Continue reading Xinyuan Science & Technology Service (NEEQ:870929) Outstanding 1H18 Results

Xinyuan Science & Technology Service (XSTS), the property management subsidiary of Xinyuan Real Estate, filed its 2017 Annual Report (LINK).  Even though XSTS shares are not yet trading publicly, the NEEQ listing provides visibility into the rapid growth in Xinyuan's recurring revenues and income from this business.  Highlights: The company’s NEEQ listing was approved on … Continue reading Xinyuan Science & Technology Service (NEEQ:870929) Outstanding 2017 Results

Highlights from Xinyuan’s recently reported 4Q17 results and Conference Call: China Contract Sales of $802mm, highest ever Only 5 more units sold at the Oosten Project in New York Book Value rose to approximately $15.34/ADS Leverage rose substantially.  Total assets increased by $2.2Bn in 2017 while equity increased by just $0.1Bn.  Landbank increased to 4.9mm sqm in 2017 … Continue reading Xinyuan Real Estate: Notes on 4Q Results

  Highlights from Xinyuan’s recently reported 2Q17 results and Conference Call: China contract sales of $598mm, second highest ever Poor sales at the Oosten Project in New York SG&A Expense was 10.6% of revenue Interest Expense dropped to $10.4mm, a normal level following the unusually high expense in 2Q17 Effective tax rate was 58% due to the non-deductible … Continue reading Xinyuan Real Estate: Notes on 3Q Results

Xinyuan will release earnings on Friday 11/10 (announcement and webcast link).  This article covers some background information that may be of interest to investors: Notes on 1H17 financials What to look for in 3Q results Benchmark valuations Financial Notes (project costs, gross margins, interest, tax, and book value per share): Xinyuan released 2Q earnings in August … Continue reading Comments on Xinyuan Real Estate Ahead of 3Q17 Earnings

Highlights from Xinyuan's recently reported 2Q17 results and Conference Call Record quarterly contract sales of $732mm SG&A expense declined to 9.9% of revenue (vs 11.4% for FY16) Unusually high interest expense of $20.2mm Effective tax rate of 56% Book Value rose to $14.13/ADS Conservative land acquisition budget of 5-7Bn RMB No full-year financial guidance Achieved … Continue reading Xinyuan Real Estate: Record 2Q Sales Balanced by High Interest & Tax

Key information from Xinyuan results and recent developments Xinyuan 1Q17 sales were above guidance and the company hinted that it expects a 42% increase in contract sales for the full year. Net Value delivered for shareholders in 1Q17 through book value increase + dividend of $0.38/share Strong financial condition and prudent approach to land acquisitions … Continue reading Xinyuan 1Q17 Results and Signals of a Strong Year

Xinyuan Science & Technology Service (STS), the property management subsidiary of Xinyuan Real Estate, filed its 2016 Annual Report (LINK).  Highlights: The company's NEEQ listing was approved on 3/15/17 (LINK), but the ownership structure shows that no shares are yet publicly held: Combining Xinyuan STS year-end results with valuation ranges of Hong Kong listed competitors … Continue reading Xinyuan Science & Technology Service (NEEQ:870929) 2016 Results