Insider Buying at Selected Chinese Property Developers

Most real estate developers in China have reported strong contract sales in 2017 and enjoyed significant share price appreciation.  It is somewhat surprising to see that insiders have recently been adding to their holdings. Recap of share valuation and returns: In several cases (CIFI, SCE, and Yuzhou) it appears that purchases were intended to signal … Continue reading Insider Buying at Selected Chinese Property Developers

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Xinyuan Real Estate: Notes on 3Q 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

Comments on Xinyuan Real Estate Ahead of 3Q17 Earnings

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

Xinyuan Science & Technology (NEEQ:870929) coverage initiated by Shanxi Securities

Xinyuan Real Estate's property management business, Xinyuan Science & Technology (XST), was approved for listing on China's National Equities Exchange and Quotations (NEEQ) "New Third Board" in March (LINK).  Broker coverage is a strong signal that a public offering of shares by  is planned.  Benefits of an offering to Xinyuan Real Estate (XRE) would be: … Continue reading Xinyuan Science & Technology (NEEQ:870929) coverage initiated by Shanxi Securities

Xinyuan 3Q17 Contract Sales Estimate from CRIC

China Real Estate Information Corporation (CRIC – a subsidiary of E-House) released estimated 9M17 sales data for the country’s top 100 property developers (LINK).  Xinyuan China is shown at #75 with estimated sales of 15.8Bn RMB year-to-date, which means 6.56Bn RMB for 3Q. CRIC does not have access to any official company records and compiles … Continue reading Xinyuan 3Q17 Contract Sales Estimate from CRIC

Xinyuan Real Estate: Record 2Q Sales Balanced by High Interest & Tax

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

Xinyuan 2Q17 Contract Sales Estimate from CRIC

China Real Estate Information Corporation (CRIC – a subsidiary of E-House) released estimated 1H17 sales data for the country’s top 200 property developers (LINK).  Xinyuan China is shown at #79 with estimated sales of 9.24Bn RMB for the half, which means 4.75Bn RMB for 2Q. CRIC does not have access to any official company records … Continue reading Xinyuan 2Q17 Contract Sales Estimate from CRIC

Xinyuan Xi’an Land Purchase

Xinyuan Real Estate disclosed through a wechat post that it acquired a new plot for development in Xi'an.  Key terms: Price: Not disclosed. Buildable Floor Area: 310000 sqm Land Use rights: Commercial The land was acquired through a private transaction rather than a public auction and Xinyuan has not yet disclosed the price.  Apartments in the … Continue reading Xinyuan Xi’an Land Purchase

Xinyuan Kunshan Land Purchase

Xinyuan Real Estate disclosed through a wechat post that it was the winning bidder in a court auction of a partially completed commercial project in Kunshan.  Key terms: Price: 754,331,700 RMB Buildable Floor area: 163,300 sqm Land Use Rights: Commercial My understanding is that Xinyuan plans to submit a new site plan to the local government … Continue reading Xinyuan Kunshan Land Purchase

Xinyuan 1Q17 Results and Signals of a Strong Year

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