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Evergrande's half-year profit to triple as property prices soar
[SHANGHAI] China Evergrande Group, China's largest developer, expects half-year profit to approximately triple from a year earlier, driven by soaring property prices and rising sales of homes.
The developer also said its full repayment of perpetual securities will help boost profit attributable to shareholders, according to a Tuesday regulatory filing.
Evergrande's core profit had declined 23 per cent to 7.8 billion yuan (S$1.574 billion) in the year-earlier period, driven by higher costs to market its properties and service its debt.
Controlled by billionaire Hui Ka Yan, Evergrande's strategy of focusing on third- and fourth-tier cities paid off as China stepped up home-buying curbs in top cities to rein in property prices. The company's shares have surged more than 266 per cent this year.
Evergrande's redemption of all 113 billion yuan in perpetual capital instruments will "significantly " boost net income, the company said.
Evergrande's moves to cut its debt load spurred a rally in bonds and shares last month, even though it continues to rank among China's most-indebted developers.