CHINA NEW TOWN Development Co Ltd (HK:1278; SP: CNTD), which launched a second listing in Hong Kong by way of introduction on October 22, announced that its third quarter net profit jumped 35% year-on-year to over 521 mln yuan.
The developer of “new towns” mainly in the fast growing suburbs of PRC cities saw its July-September revenue rise 28% to 1.1 bln yuan.
Attention: Bargain Hunters
China New Town announced that on October 21, its closing price on the SGX-ST was 0.185 sgd (1.11 hkd) with trading volume of 55.79 mln shares.
As of end-day trade Thursday, its share price in Singapore was at 0.130 sgd with trading volume of 13.3 mln shares.
Meanwhile, as of market close in Hong Kong today, its shares were at 0.840 hkd with trading volume of 2.24 mln shares.
“On October 22, the company was successfully listed on the Main Board of the HKEx by way of introduction. As a result, the company is now dual listed on
the Main Boards of both the SGX-ST and the HKEx.
"The dual listing can facilitate investment by Hong Kong investors and enable us to gain access to the investor base in Hong Kong’s capital markets and to benefit from its exposure to a wider range of private and institutional investors,” said Mr. Song Yiqing, China New Town’s Chief Financial Officer and Executive Director.
He added that management believes that in the long run, the dual listing could potentially increase the liquidity and estimated market price of the shares.
“Management considers it important for the Company’s growth and long-term development, particularly bearing in mind that the Company’s operations are principally located in the PRC.”
Despite recent valuation drops on both markets, in line with the overall bourses’ corrections of late, the property developer has been wowing with its financial reports.
And thanks to the steady flow of millions of rural denizens to China’s urban areas, with metropolitan areas mushrooming up all over the country, China New Town with its focus on building residential complexes in suburban areas, is well-positioned to see even more explosive growth going forward.
“According to the new five year plan, China targets to increase the current 46% urbanization rate to 50%. We directly engage in the urbanization process by building new towns in the suburbs of major economic centers. In all of our new town development projects, we finance the relocation and resettlement of local residents. We also optimize land use through expert planning,” Mr. Song said.
And China New Town’s business model provides suburban land to ease city center’s population pressure and property price pressure.
“Therefore we strongly believe that China New Town will benefit from the central government’s urbanization strategy and relevant policies. Unlike real estate developers, we are not the target of the recent regulatory tightening aimed at curbing speculative rise of property prices,” he added.
See also: CHINA NEW TOWN: Listing Of Shares In HK Expected In 10 Days' Time
