Ying Li

Ying Li: 1Q13 results in-line, as net profit more than doubled to Rmb7.5m for 1Q13 despite a 14.6% decline in the group’s revenue as the group recognised less property sales during the qtr. Gross profit increased 20.2% yoy to Rmb60.7m with gross profit margins improving to 58.6% as the group recorded a larger proportion of higher-margin rental income. The results are within expectations as Ying Li can only recognise the sale of its properties upon completion. The grp expect strong earnings growth on the entire year basis as the group has collected more than Rmb956m of pre-sale proceeds last year. UOB Kay Hian maintains Buy with $0.65 TP. House note that 1Q13 results briefing will be key as analysts would get to meet the new CEO and gain more insights on his future plans and other potential land-banking opportunities. Also see potential RNAV accretion from its Wuyi Rd and San Ya Wan developments.