China New Town Dev (CNTD): reported 3Q results yday. Revenue +28% yoy, at Rmb 1.08b, vs Rmb 59m in 2Q, due to sale of land parcels from the Luodian Project in Shanghai. Net profit +31% yoy at Rmb 371m, reversing 2Q’s net loss of Rmb 67m…
CNTD financials tend to be lumpy, bcs of its unique business model, whereby the co. prepares “raw” land for development through the building of infrastructure and then gets a portion of the land sale revenue. CNTD does not own the land its develops.
Mkt likely priced in the big improvement in bottom line already, as the Luodian land sales were announced back in Aug.
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