|Bid||7.24 x 0|
|Ask||7.25 x 0|
|Day's Range||7.16 - 7.40|
|52 Week Range||6.51 - 11.27|
|Beta (5Y Monthly)||0.05|
|PE Ratio (TTM)||5.57|
|Earnings Date||Apr 29, 2021|
|Forward Dividend & Yield||0.45 (6.21%)|
|Ex-Dividend Date||Jul 03, 2020|
|1y Target Est||3.70|
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Jinke Property Group Co., Ltd. Hong Kong, November 11, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Jinke Property Group 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.
Jinke Smart Services Group, a property management company spun off from Shenzhen-listed Jinke Property Group, is seeking to raise up to US$816 million from a Hong Kong initial public offering, joining over a dozen firms from the sector that have tapped the city's capital market this year.The company is selling 132.9 million shares, or 21 per cent of its share capital, at a range of HK$41.8 (US$5.4) and HK$47.6 per share, with an overallotment option of up to 19.9 million additional shares to cover strong demand from investors, according to its prospectus.The company plans to use the IPO proceeds to pursue investment and acquisition opportunities, and on upgrading their digital and smart management systems.Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.The offer, which kicked off on Thursday, closes on Tuesday. Trading is set to start on November 17.Thirteen property services companies have listed in Hong Kong so far this year, raising a total of US$3.5 billion, versus US$857.6 million from seven deals in the same period last year, according to Refinitiv.Last Friday, KWG Living and Shimao Services debuted on the main board after raising HK$3 billion and HK$9.8 billion, respectively.More such IPOs are in the pipeline before the end of the year. Sunac Services, the property services arm of China's fourth largest developer, is pre-marketing its IPO to raise at least US$1 billion. Evergrande Services, a unit of the world's most indebted developer, is also targeting around US$1 billion that could kick off in December, according to people familiar with its plans.China's struggling home builders are looking to cash in on the profitable parts of their business amid a housing market slowdown this year. But some analysts are beginning to see investors' enthusiasm for the sector cooling off."Although developers would continue to spin-off and list their property management arms given the current tight credit [in China], we believe these potential IPOs would likely be priced at a discount to those [already] listed this year," Stephen Cheung, an analyst at Jefferies, wrote in a recent report.As of June, Jinke Smart oversaw 487 property management projects with a total gross floor area under management at about 129.7 million square metres. The company said it makes use of technology such as cloud applications, big data, internet of things and artificial intelligence to enhance operational efficiency and improve its services.The Chongqing-headquartered company, whose operations cover 24 provinces, municipalities and autonomous regions, posted an 83 per cent jump in net profit to 302.5 million yuan (US$45.4 million) for the six months ended June, from 165.6 million yuan during a year ago.The property services unit of China Evergrande could launch an IPO next month. Photo: Reuters alt=The property services unit of China Evergrande could launch an IPO next month. Photo: ReutersJinke Smart has already secured 10 cornerstone investors who have committed US$345 million. These include Chinese insurance firm Taikang Life, private equity manager Hillhouse Capital, and asset managers Snow Lake Capital, UBS Asset Management and CICC Capital Management.The joint sponsors and global coordinators for the deal are Citic Securities and Huatai International. The joint bookrunners include CICC, Citi, Guotai Junan International and ICBC International.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.
(Bloomberg Opinion) -- As China’s economy picks up after the pandemic, the last thing you might expect is a renewed credit squeeze in the real estate industry. So the imposition of leverage thresholds for developers has come as a surprise, weighing on shares of highly indebted companies from China Evergrande Group to Greenland Holdings Corp. The concerns may be overstated.China's widely circulated though unofficial “three red lines” policy sets limits on bank borrowings: a 70% ceiling on developers' debt-to-asset ratio after excluding advance receipts; a 100% cap on the net debt-to-equity ratio; and a requirement that short-term borrowings don't exceed cash reserves, according to S&P Global Ratings. UBS Group AG lists nine publicly traded companies that would breach the three thresholds. The policy builds on tightened restrictions in the interbank bond market. Under guidelines issued in August, homebuilders can sell new bonds only to refinance existing debt. Funds raised can’t exceed 85% of companies' total outstanding debt, preventing them from rolling over all their liabilities.China's real estate prices have done well this year, helped by stimulus measures in response to the Covid outbreak. Prices rose 3.6% in tier-1 cities , 5.3% in tier-2 cities, and 4.4% in lower-tier cities in July from a year earlier, according to Moody’s Investors Service. Restricting the flow of credit to developers may help to curb a glut of housing supply, with the stock of unsold homes standing at 480 million square meters across 100 cities.While that's a challenge to companies such as Guangzhou-based Evergrande, which at one point was the world’s most indebted developer, the big companies have always found ways to raise funds. Evergrande, for example, is considering listing its property management arm in Hong Kong. Valuations for management businesses are higher than for homebuilders because of their sticky client base and steady cash flows. It’s not alone. In recent weeks, a wave of developers has jumped on the property management bandwagon including China Resources Land Ltd., Sunac China Holdings Ltd., KWG Group Holdings Ltd. and Jinke Properties Group. All filed prospectuses online in recent weeks, with state-owned China Resources planning to raise as much as $1 billion from an IPO of its property management arm, according to Julia Fioretti of Bloomberg News. That would make it one of the largest such flotations in the city.The overseas debt market also remains open. Shenzhen-based Kaisa Group Holdings Ltd., which gained notoriety in 2015 for being the first Chinese developer to default on a dollar bond, had $2.65 billion in subscriptions for a $400 million issue this month. Even onshore, there are options: Greentown China Holdings Ltd., for instance, is raising 950 million yuan ($139 million) selling bonds on the stock exchange, after garnering 15 billion yuan from the interbank market as recently as April.The bottom line is that the property industry is just too important for the government to squeeze funding to the point where defaults may occur. By some measures, housing and related sectors like home furnishings make up a quarter of GDP. Franco Leung, associate managing director at Moody’s, says the government will continue to fine-tune regulatory measures and control credit growth to avoid a run-up in prices. Restrictions on home purchases in cities such as Shenzhen have already had an effect. The current round of credit tightening is unlikely to be the end. With few investment outlets apart from the volatile stock market, real estate will always attract buyers, even if President Xi Jinping has admonished that homes are for living in and not speculation. Few things are safer than houses in China. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.