OCBC Investment Research has maintained “hold” on Yanlord Land Group, though it has lowered its fair value estimate to $1.24 from $1.41 on lower gross margin and contracted sales assumptions from the Chinese developer in FY2021, says the team on March 3.
The group’s results for the FY2020 ended December came within the brokerage’s expectations, with 28.1% higher y-o-y revenue at RMB23.9 billion ($4.92 billion). Gross profit increased 13.3% y-o-y to RMB8.7 billion due to lower gross profit margin (GPM) of 36.4%, 4.8 percentage points lower y-o-y.
