“Development margin will also remain pressured amidst the ongoing property downcycle as projects presold at lower margins (10%-15%) enter its profit and loss (P&L) statement and further inventory impairments are expected up ahead,” the analysts add.
DBS analysts Jason Lam, Dexter Chun and Ben Wong have downgraded Yanlord Land Group (SGX:Z25
) to “hold” on from “buy” previously, while lifting their target price to 70 cents from 67 cents.
According to the analysts, Yanlord has had continually weak presales performance, with a 52% decrease y-o-y in 1HFY2024 ended June and thinning unbooked sales, as evidenced by a 21% h-o-h decrease to RMB53.6 billion ($9.87 billion).
