Evergrande Receives Positive Outlook From Morgan Stanley After Strong Sales Last Month
Dou Shicong
DATE:  Feb 07 2018
/ SOURCE:  Yicai
Evergrande Receives Positive Outlook From Morgan Stanley After Strong Sales Last Month Evergrande Receives Positive Outlook From Morgan Stanley After Strong Sales Last Month

(Yicai Global) Feb. 7 -- Leading property development firm China Evergrande Group recorded sales of more than CNY64 billion (USD10.1 billion) last month, a surge of 73 percent annually, drawing an optimistic outlook from US investment bank Morgan Stanley AG.

The Guangdong-based realty behemoth's robust January sales mean it has already achieved 12 percent of its CNY550 billion sales goal for the year, while sales by area reached over 6.2 million square meters for the month, an annual rise of 48 percent, the firm said in a statement.

The company is outperforming the industry average, Morgan Stanley said in a research note, adding that this trend is expected to continue for the rest of the quarter and Evergrande's share price [HKG:3333] is extremely likely to rise in the next 30 days.

Evergrande has leveraged its relatively high quality and low-priced housing with rigid customer demand to achieve the strong results in January, a traditionally weak month for the property sector, analysts said. The industry has also faced extra pressure due to increased regulation from the Chinese government.

The firm's shares rebounded sharply this morning after several consecutive days of decline. Its price rose by nearly 10 percent peaking at noon before slumping to close at HKD22.45, slightly down on the day before.

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Keywords:   Evergrande,Morgan Stanley,Sales Growth