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| Wednesday, 6 November 2019, 15:00 HKT/SGT | |
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Supported by Strong Contracted Sales Growth and Strengthened Credit Metrics
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HONG KONG, Nov 6, 2019 - (ACN Newswire) - Moody's Investors Service has assigned a first-time B2 corporate family rating (CFR) to Redsun Properties Group Limited, a leading integrated property developer in China, ("Redsun Properties" or "Group"; stock code: 1996) with positive outlook.
The positive outlook reflects Moody's expectation that Redsun Properties will (1) continue its strong contracted sales growth; (2) strengthen its credit metrics over the next 12-18 months; and (3) improve its access to both offshore and onshore funding channels.
The Group has generated strong contracted sales growth over the past two years, with 40% year-on-year gross contracted sales growth to RMB43.8 billion in the first nine months of 2019, and 84% year-on-year growth to RMB47.3 billion in 2018. Moody's expects that Redsun Properties' gross contracted sales will continue to grow at an annual rate of 25%-30% to reach around RMB75 billion-RMB80 billion by 2020. It expects the Group's rental income will grow 25%-40% annually to around RMB450 million-RMB500 million over the next 12-18 months from RMB359 million in 2018.
"Redsun's B2 CFR reflects the company's long track record of developing properties in Jiangsu Province, its quality land bank, as well as its strong sales execution. The rating also considers the recurring income streams generated from its investment properties, which improve the stability of its debt servicing," says Cedric Lai, a Moody's Vice President and Senior Analyst.
About Redsun Properties Group Limited ("Redsun Properties") (stock code: 1996)
Redsun Properties Group Limited ("Redsun Properties" or "The Group") is a leading comprehensive developer in China, focusing on development of residential properties and the development, operation and management of commercial and comprehensive properties. The Group has established a steady regional leading position in Jiangsu Province by taking root in Nanjing, Jiangsu and Yangtze River Delta. Since the incorporation of Nanjing Redsun in 1999, Redsun Properties has worked in the sector of property development and sales for 20 years, established the Hong Yang brand and received widespread recognition for the development capacity and industry position.
While developing residential properties, Redsun Properties also operates commercial complexes covering shopping malls, amusement parks and community centers, hotels and office buildings. Most of the commercial property buildings are adjacent to the Group's residential property projects, providing ancillary services for the residents and also increasing the value of the Group's residential property projects.
Topic: Press release summary
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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