With some RMB8.6 billion in unrestricted cash on hand as of June and the continued sell-down of its projects, with some RMB30 billion in saleable resources planned for launch in the current FY2025, Yanlord appears well positioned to pay down debts and emerge from the multi-year deleveraging phase, says DBS.
DBS Group Research has kept its "hold" call on Yanlord Land Group following its most recent 1HFY2025 results. Nonetheless, DBS is getting more upbeat on this stock, given how the China-based property company is moving towards the end of its multi-year debt repayment cycle. To reduce debt, Yanlord has suspended dividends.
With constant repayment, totalling some US$121 million year to date, Yanlord is left with just one offshore senior note of some US$379 million outstanding in the public bond market. "Yanlord has been conservative and maintains a defensive strategy to manage its cashflow and liquidity, key priorities since the start of the property downcycle," states the DBS analysts Jason Lum, Dexter Chun and Ben Wong in their Aug 18 note.
