Hard to imagine they are not making money in this environment, but they are not. The estimates for next Q show a profit but for the 1st Q of next year they go right back to losses. Stock is down from 31 to 3, need some management shake up badly:
Buying sentiment lifts home sales
By Cherry Cao | 2012-11-27 |
A strong sentiment among first-time buyers boosted new home purchases in Shanghai to the highest in 21 weeks while the average price fell, data showed yesterday.
Sales of new homes, excluding government-funded affordable housing, jumped 34.5 percent weekly to 265,900 square meters during the seven days through Sunday, according to Shanghai Deovolente Realty Co.
"Last week's transaction volume, which was the second highest registered so far this year, was a result of extremely robust momentum among budget-tight home buyers," said Lu Qilin, a Deovolente researcher. "I expect total volume to exceed 900,000 square meters in November, which will then make it the second-best month in terms of new home sales only after June."
The new homes were sold at an average 20,233 yuan (US$3,211) per square meter, down 16 percent from the previous week, according to Deovolente data.
Nine of the city's 10 best-selling housing projects last week cost no more than 18,000 yuan per square meter each, with the most popular development selling 260 apartments at an average 13,128 yuan per square meter each.
A research by Shanghai Uwin Real Estate Information Services Co disclosed that as of Sunday, new home purchases totaled 795,500 square meters in November.
I can not feature out their financial statements, maybe someone can point out.
Their gross margin is high but net margin is low, that means they are spending money somewhere. Maybe investing in technology, expanding their market, or just simply spent in employee benefits?
LAND sales exceeded 10 billion yuan (US$1.6 billion) in Shanghai in November for the second straight month as an abundant supply and a recovery in home sales continued to boost sentiment among real estate developers.
The city saw 940,000 square meters of land were sold for 10.6 billion yuan last month, compared with 590,000 square meters sold for 10.9 billion yuan in October, Century 21 China Real Estate said yesterday in a report.
"The strong (buying) momentum will probably extend for another month," said Huang Hetao, a research manager at the city's largest estate chain by outlets. "More prime sites were released locally over the past two months, and the 'fiesta' is set to last till the year-end."
Nineteen land plots, with a combined starting price of 16.5 billion yuan, are to be auctioned this month, according to the website of the Shanghai Bureau of Planning and Land Resources.