Yanlord Land: Nomura expects the company to report weak FY14 results, due to poor sales which deferred some of its new project launches. Also, poor performances in ongoing Tangshan and Chengdu projects is expected to pull down gross margins further to 30% in FY14F from 31.1% in 1H14 and 35.5% in FY13.
The stock currently trades at 7.9x FY15F P/E, which is relatively more expensive
vs. the sector average of 5-6x.
Subsequently, house cuts FY14-16F earnings estimates by 12-13%, 9% below consensus, translating to a new TP of $0.92 (from $0.96). Nomura maintains its Reduce rating on the counter.
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