Yanlord

Yanlord: FY12 results above expectation, as core net profit at Rmb 1.3b was up 68% yoy, beating Barclays' estimate by 13%, driven by higher net margin. Gross margin came in line at 36%. Net gearing declined to 38%, above expectation due to land payment delay. The company paid Rmb 9 cts dividend, more than consensus estimate. Nevertheless, Barclays believes the strong results present good opportunity to sell into strength; remains concerned about rising tightening policy risks in top-tier cities, and expect it to resume slow growth in 2013. The house reiterates Underweight with TP $1.39. The stock is -0.3% at $1.545.