Poly Real Estate Posts 29% Jump In Profits For 2012
News: China ' s second-largest developer Poly Real Estate Group has posted a 29.2% jump in net profit to CNY8.44bn (US$1.35bn) for 2012 against the previous year, according to Xinhua. The company said in a filing with the Shanghai Stock Exchange that business turnover shot up by 46.5% to CNY68.91bn (US$10.98bn), aided by a home sales increase of 38.91% to CNY101.74bn (US$16.21bn) as markets improved.
BMI View: It is widely acknowledged that China's 'big four' developers are China Merchants Property Development (CMPD), Gemdale Corporation, China Vanke and Poly Real Estate Group. As a result of this status, these four firms enjoy solid national reputations. However, even these four companies are likely to experience heightened competition or decreases in revenue as a result of the austerity the government has enforced in the residential sector. Overall, the four companies are better placed to weather a subdued 2013, as evidenced by recent reports that CMPD has bought four plots of land in different areas of the country for residential and commercial developments.