Ying Li

Ying Li: Results below estimates. 1Q Rev at Rmb121.0m was up 302.6% yoy with net profit up Rmb5.5m compared to a loss in 1Q2011. Sales improved on sale of IFC office units launched last quarter. Co also recorded a once-off demolition charge of Rmb11.8m for its Sanyawan land. Gross profit margins also were affected falling to 41.7% as a result of higher land appreciation tax. Co remains positive on Chongqing despite the recent reshuffling of Chongqing’s party secretary, from Bo Xilai to Zhang Dejiang, with retail property vacancy rate falling by 1.1% points DBS maintains Buy with TP$0.26 with view that IFC and its residential Daping project should underpin earning over the next few years in FY12 and FY13.