|Bid||27.46 x 0|
|Ask||27.47 x 0|
|Day's Range||26.62 - 27.47|
|52 Week Range||24.18 - 33.60|
|Beta (5Y Monthly)||0.51|
|PE Ratio (TTM)||7.83|
|Earnings Date||Oct 29, 2020|
|Forward Dividend & Yield||1.02 (3.77%)|
|Ex-Dividend Date||Aug 14, 2020|
|1y Target Est||31.75|
China Vanke, the mainland's third-largest home builder, aims to raise its second billion-dollar of fresh capital in as many years from stock placements, after ploughing through a slowdown caused by the coronavirus pandemic.The homebuilder will sell 315.59 million new shares at HK$25 each to raise HK$7.87 billion (US$1.01 billion), according to a filing to the city's exchange on Thursday. The offer price represents a 4.8 per cent discount to Wednesday's close of HK$26.25.Its shares jumped 2.3 per cent to HK$26.85 while its Shenzhen-listed A shares fell 0.4 per cent to 26.73 yuan. The refinancing plan comes after the developer reported a 7.7 cent drop in sales for the first five months of this year due to the pandemic.The placement follows a similar move in April last year when it raised HK$7.8 billion by selling about 263 million new shares at HK$29.68 each, also to pay down foreign borrowings. About 82 per cent of its 39.2 billion yuan (US$5.5 billion) worth of foreign-currency loans and bonds were denominated in the US currency, according to its 2019 annual report. Coronavirus: Asian companies seek emergency cash via rights issues to plug holes in balance sheets"There are no signs that the mainland banks will increase their loan quotas to support developers this year," said Ding Zuyu, co-president of property agency E-House. "The outlook for the mainland home market remains bearish due to the impact of the coronavirus."China Vanke said on Tuesday that its sales declined in the January to May period by 7.7 per cent to 247.1 billion yuan. Vanke's home sales growth in 2019 slowed to 4 per cent, compared with 14.5 per cent in 2018 and 45.3 per cent in 2017.Last month, it unveiled a plan to move into pig farming, as a way of diversifying its revenue sources. According to job vacancies advertised on its website, Vanke is planning to breed 250,000 pigs a year.It established a new food business that will focus on pig breeding, vegetable growing and corporate catering.China's economic output shrank 6.8 per cent in the first quarter of this year, its first contraction since 1992, when it started recording gross domestic product growth.Property was one of the sectors hit hardest by the coronavirus, owing to lockdowns and restrictive measures between late January and April, which hampered business activity. In the first quarter, mainland Chinese home sales plunging by 20 per cent year on year. Vanke moves into pig farming as property fails to bring home the baconMoody's downgraded the outlook for the property sector to negative and expected nationwide sales to fall by 5 per cent to 10 per cent in 2020.Beijing, concerned by the sector's boom-and-bust cycle, has taken a hard stance on the past five years. Analysts said that monetary easing introduced to bolster China's wider economy was unlikely to benefit developers, as financial institutions continue to refrain from granting them easy credit.Meanwhile, Yuzhou Properties, another Hong Kong-listed mainland Chinese developer, said it would not consider placing new shares to raise money, because valuations were too low at the moment."We will focus on onshore bonds and getting loans domestically this year, to lower our leverage level," said Chiu Yu Kang, the company's chief financial officer. "We have not had much difficulty in raising money so far."This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of China Vanke Co., Ltd. Hong Kong, January 16, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of China Vanke Co., Ltd. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Vanke Real Estate is 100% owned by China Vanke Co., Ltd. (Baa1 stable, collectively: the Vanke Group). The proposed notes will be supported by a deed of equity interest purchase undertaking and a keepwell deed between China Vanke, Vanke Real Estate, and the bond trustee.