Ying Li

Ying Li: FY11 results.
Revenue came in at Rmb 598m, up 5-fold yoy, above DBSV’s forecast of Rmb 461m. The bulk of revenue (Rmb 483m) was booked in 4Q11, driven by IFC office units and Sanyawan Phase 1A sales recognition and more invmt property units sold in New York New York, Bashu Cambridge and Sanyawan Phase 1.
Net profit came in at Rmb277, +22% yoy.
Core net profit (excluding fair value gains) came in at Rmb 48m, below DBSV’s forecast of Rmb 81m, but reversing from last yr’s loss of Rmb 125m. This was largely driven by the surge in revenue, and partially boosted by a Rmb 11m one-off govt grant received in relation to relocation activities of the IFC project.

Ying Li continued to gear up its balance sheet, with total liabilities rising 14.5% yoy to Rmb 3.1b. Borrowings rose 17.6% yoy to Rmb 1936m, while cash fell 44% yoy to Rmb 343m. Net debt to equity rose to 56.4% from 41.2% yoy.
No dividends, as expected.

Mgt continues to be positive of the outlook of Chongqing’s commercial real estate sector, citing CBRE’s 4Q11 report that Chongqing’s commercial property mkt grew steadily due to domestic consumption and expansion in various service industries, with office spaces recording increased rents and vacancy rates on the decline, and the prime retail mkt continuing to be robust supported by the growing middle classes. The group expects to be profitable in 2012.

Stock is unchg at $0.40. Trades at 16.4x P/E, 1.5x P/B.