Tag Archives: Soufun

News Digest: November 11, 2011

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The following press releases and media reports about Chinese companies were carried on November 11. To view a full article or story, click on the link next to the headline.

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◙ China’s Sinochem Planning Up To $5.5 Billion Shanghai IPO (English article)

◙ Caterpillar (NYSE: CAT) to make buyout offer for ERA Mining (HKEx: 8043) (English article)

◙ SouFun (NYSE: SFUN) Announces Q3 Results (PRNewswire)

◙ Renren (NYSE: RENN) Announces Unaudited Q3 Results (PRNewswire)

◙ China Lodging Group (Nasdaq: HTHT) Reports Q3l Results (PRNewswire)

Real Estate Relief Coming With Foshan Reversal 佛山放宽限购政策的启示

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There’s an interesting bit of news today that indicates relief may be in sight for some real estate companies, now suffering through the most sluggish property market since Beijing reintroduced private property ownership in the 1990s. But the latest move, which has seen the mid-sized city of Foshan roll back some of its most drastic real estate restrictions, probably reflects recent financial distress being felt by local governments rather than any desire by Beijing to help a real estate sector that looks more like a gambling casino than a true property market. According to a report in the China Daily, Foshan, a smaller city near Guangdong’s provincial capital Guangzhou, has eased restrictions rolled out last year under orders from Beijing that forbade local families from buying more than one home. It also eased selling restrictions, saying owners could sell their homes if they had owned them for 5 years or more. (English article) Foshan most likely would only take this kind of step with Beijing’s approval, and I expect we’ll see similar moves from other second- and third-tier cities in the next month or two. Unlike top tier cities like Beijing and Shanghai, these smaller cities are especially dependent on land sales for their revenues, and clearly they need those revenues to avoid defaulting on the numerous infrastructure and other loans they took out at the height of the global financial crisis under directives from Beijing to boost spending to prop up the economy. Having to choose between inflation and a massive wave of defaults on local government loans, Beijing seems more willing to accept the former, at least in its smaller cities. All this should spell good news for real estate services firms like E-House (NYSE: EJ), Soufun (NYSE: SFUN) and China Real Estate Investment Corp (Nasdaq: CRIC), which derive much of their revenue from activity in the market rather than actual real estate prices. Real estate developers with a greater presence in these smaller markets should also benefit, though easing measures in top tier cities are probably still at least a year or two away.

Bottom line: A new easing of real estate restrictions in a mid-sized Guangdong city indicates Beijing is moderating its tight property policies, providing relief for real estate services firms.

Related postings 相关文章:

◙ E-House: Don’t Sell the House Just Yet 易居：不要马上卖掉这栋楼

◙ Real Estate: Soaring Growth to Stall on Market Pause

◙ Real Estate Rising?

 

Soufun Shores Up Foundation With Strong Results, Outlook 搜房网靓丽财报和前景或预示房产业向好

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The good news keeps coming from real estate services firm Soufun (NYSE: SFUN) which, after announcing a nice dividend just two weeks ago, has reported solid quarterly results and raised its 2011 guidance, in what also looks like a good sign for the real estate sector. The company’s revenue nearly doubled in the quarter and its operating profit quadrupled. (company announcement) It also upped its annual revenue outlook by nearly 10 percent, saying it now expects 2011 revenue to come in at $290-$300 million versus previous guidance of $270-$280 million. The strong results came just 10 days after Soufun announced a dividend that amounted to a cash return of about 5 percent, in a bid to lure back investors as US-listed China stocks take a broader beating due to concerns about their accounting. (previous post) Soufun didn’t provide any commentary with the results, but clearly the ongoing correction in China’s overinflated real estate market isn’t as severe as many had predicted, at least not yet. That news should also bode well for other big real estate services firms like E-House (NYSE: EJ), which is in dire need of good news after a very weak first-quarter report that saw it slip into the red. (previous post) We’ll have to wait for E-House’s results to see if a turnaround is really underway for the broader sector. But at first glance at least, Soufun’s strong results seem to say that demand for real estate services and transaction volumes are picking up as home buyers look for bargains after months of waiting to see the effects of Beijing’s attempts to cool the market. Healthy activity for lower priced homes in smaller markets might also be a factor in Soufun’s good results, as evidenced by a stronger-than-expected second-quarter report earlier from Vanke (Shenzhen: 000002), China’s leading home builder. (English article)  Regardless of specifics, all the signs certainly seem to point to better times ahead for Soufun.

Bottom line: Soufun looks like a good bet following strong Q2 results and a new dividend, boding well for the broader real estate sector.

房地产服务公司搜房网(SFUN.N)不断传来好消息。公司两周前刚刚宣布派息，现又公布了第二季度的靓丽财报，且提高了2011财年的预估收入，这似乎也是房地产行业的一个好迹象。搜房网第二季度的营收增长近一倍，其营业利润同比增长3倍。公司还将年度营收预估提高了近10%，称目前预计2011财年的营收额在2.9亿-3亿美元之间，高于此前2.7亿-2.8亿美元的预期。因受累于在美上市企业会计丑闻所带来的不利行情，就在10天前，为重新吸引投资者，搜房网宣布决定每股普通股派发一美元股息。搜房网没有就该财报提供任何评论，但很明显，中国房地产市场正在进行的修正并没有很多人预计得那麽严重，至少目前看是这样。这则消息对易居中国(EJ.N)等其他大型房地产服务公司亦是利好。此前，易居中国第一季度录得的业绩十分黯淡。我们还需等待易居中国发布第二季度的财报，以确定整个房地产业是否出现好转。但至少初步看来，搜房网的靓丽财报似乎说明，购房者在观望政府楼市打压政策数月後，国内对房地产服务的需求和交易量都在增加。较小市场低价房屋的良好动向或许也是搜房网靓丽财报的一个因素，此前万科(000002.SZ)优于预期的第二季度财报便是明证。所有迹象似乎都预示搜房网前景向好。

一句话：搜房网二季度财报靓丽，加上此前宣布的派息，该公司看似一个不错的选择，并预示整个房地产业前景向好。

Related postings 相关文章:

◙ Sofun’s New Strategy: Dividend Wave Ahead? 搜房网新策略：中国概念股派息潮即将来临？

◙ E-House Foundations Looking Outright Shaky 易居中国根基明显摇晃

◙ Beijing Money Shut-Off Reaches a Roar, Real Estate Suffers 银行贷款下降 房地产市场受压

Giant Fires CFO, Offers Dividend to Placate Investors 巨人网络CFO辞职 高额分红以安抚投资者

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There’s nothing like a big fat dividend to say you’re sorry, or at least that seems to be what online game operator Giant Interactive (NYSE: GA) is telling investors by becoming the latest US-listed Chinese firm to offer a dividend after coming under fire for some of its accounting practices. The company also announced the resignation of its CFO, again in an apparent attempt to mollify investors about one of its investments in an insurance business. But first the dividend. Just a week after real estate services firm Soufun (NYSE: SFUN) offered wary investors a 5 percent dividend (previous post), becoming the first major US-listed Chinese firm to offer such a dividend, Giant has come out with its own offering of a dividend of $3 a share, according to its latest results announcement. (company announcement) That translates to a yield of a whopping 40 percent, one of the highest rates I’ve seen in recent years, based on Giant’s latest closing price. At the same time, the company also announced the resignation of its CFO, who is being replaced by another person whose credentials include a stint at global accounting firm PricewaterhouseCoopers. (company announcement) Reading between the lines seems relatively simple here: Giant’s chairman used the company as his personal investment vehicle to buy an insurance company, a move that no doubt was approved by a CFO who was eager to please his boss even though insurance was completely unrelated to Giant’s core gaming business. When investors found out, they protested by selling off Giant shares, which tumbled 30 percent in the last 3 months. To win investors back, Giant is offering this generous dividend and has fired its CFO as a scapegoat. This is exactly the kind of shenanigan that has led to a broader confidence crisis over the accounting practices of US-listed Chinese companies. If I were an investor, I would certainly consider buying Giant for the short term simply for the dividend. But longer term, I’d still be quite wary of this and many other US-listed Chinese companies.

Bottom line: Giant Interactive’s awarding of a generous dividend and firing of its CFO is an attempt to mollify investors over accounting concerns, which will continue to weigh on the company’s stock.

要想表达歉意，没什麽能比提供一份丰厚的分红更好的了——至少近来因会计事宜而遭遇批评的网络游戏公司巨人网络是想通过这种方式来与投资者沟通。巨人网络还宣布首席财务官(CFO)辞职，很明显这也是就一笔保险生意的投资来安抚投资者。就在一个星期前，搜房网(SFUN.N: 行情)决定给投资者5%的分红，这是第一家这麽做的在美国市场上市的中国公司，而巨人网络则紧随其後，提供每股3美元的分红，这意味将40%的利润用来分红，这是近年来我看到的分红力度最大的一次。同时，巨人网络还宣布了新的CFO上任，此人曾经在普华永道工作。解读这一系列事件，其中隐含的意思其实很简单：巨人的董事长将这家公司作为其个人投资工具，购买了一家保险公司，而CFO为了讨好自己的老板，就毫不犹豫地批准了，没有顾及到保险业务是与巨人的核心游戏业务完全无关的。投资者发现後，通过抛售巨人股票以示抗议，巨人股票在过去三个月就大跌30%。为了安抚投资者，巨人提出分红并解雇CFO。但实际上这会让人们对巨人的财务状况产生更大的信任危机。如果我是投资者，我肯定会短期内买巨人的股票，来获得分红，但从较长期投资角度而言，我会对巨人公司和其他在美国上市的中国公司持警惕态度。

一句话：巨人网络公司提供丰厚分红，解聘其CFO，是为了安抚投资者对会计问题的担心。

Related postings 相关文章:

◙ Sofun’s New Strategy: Dividend Wave Ahead? 搜房网新策略：中国概念股派息潮即将来临？

◙ 55tuan Scraps Listing Plan After Banks Get Cold Feet 各投行临阵退缩 “窝窝团”放弃赴美上市

◙ Wall Street Clean-Up Underway Amid Accounting Crisis 会计危机中华尔街展开清理行动

Sofun’s New Strategy: Dividend Wave Ahead? 搜房网新策略：中国概念股派息潮即将来临？

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Several US-listed China firms have launched recent share buybacks to boost stock prices hit by the ongoing confidence crisis (previous post), but real estate services leader Soufun (NYSE: SFUN) is taking a different and interesting approach by offering a dividend, in what could be a sign of things to come. (company announcement) Soufun said it will pay a dividend of $1 per share under its new plan, equating to a generous return of nearly 5 percent based on the company’s share price when the plan was announced. Despite rising as much as 5 percent on Monday after the announcement, Soufun shares ended the day down 2 percent, reflecting both investor skepticism about China stocks as well as Soufun’s own prospects due to a pending correction in China’s overinflated real estate market. The tepid response aside, this kind of move looks much smarter to me than previous buybacks launched by the likes of Spreadtrum (Nasdaq: SPRD) and Dangdang (NYSE: DANG), as it provides some concrete rewards for investors compared with the less tangible rewards from a share buyback. Many of the larger New York-listed Chinese firms are sitting on huge cash piles already that they don’t know what to do with, and this kind of return of money to investors — especially if Soufun decides to make its dividend an annual event — could be just the kind of reassurance investors would like to see to give them at least a little protection against economic and accounting concerns. While initial response to the dividend seems a bit disappointing, I’d look to see how Soufun’s shares fare over the next week or two before passing final judgment. If the stock outperforms the market, which seems like a strong bet, I wouldn’t be surprised to see some of the other major US-listed Chinese firms with big cash reserves launch their own dividend plans, in an effort to win back skeptical investors with similar cash returns.

Bottom line: Soufun’s new dividend plan, providing an immediate 5 percent return to investors, could lead to a new round of similar dividends from US-listed Chinese firms looking to prop up their shares.

多家在美上市的中国企业纷纷回购股票，以提振遭信任危机重创的公司股价。但中国房地产服务领头羊搜房网<SFUN.N>采取的策略与众不同，很有意思：派息。搜房网宣布现金派息计划，决定每股普通股派发一美元股息，按照计划宣布时公司的股价，此举相当於近5%的收益。尽管派息计划宣布後，搜房网股价周一上扬5%，但当天其股价收跌2%，既反映出投资者对於中国概念股的忧虑，也反映出对於搜房网前景的怀疑。尽管市场反应不温不火，我认为这种策略要比之前展讯通信<SPRD.O>和当当网<DANG.N>等企业的回购做法聪明得多。因为派息对投资者的回报更为直接，而股票回购则没有那麽明显。很多在纽约上市的中国较大企业根本不差钱，而且不知道钱怎麽花。而这种回馈方式可能正是投资者所需的一种安慰，在经济与会计忧虑中至少对投资者起到一点保护作用。虽然市场对派息的初步反映有些令人失望，但我会密切关注未来一到两周搜房网的股价表现，然後再做定论。如果搜房网跑赢大盘，一些其他在美上市的中国企业也推派息计划，让疑虑重重的投资者重拾一些信心，我不会感到意外。

一句话：搜房网的派息计划可能会令其他在美上市的中国企业跟进，掀起一股派息潮。（

Related postings 相关文章:

◙ 55tuan Scraps Listing Plan After Banks Get Cold Feet 各投行临阵退缩 “窝窝团”放弃赴美上市

◙ China NY Stocks on Cusp of Comeback? 中国赴美上市公司股票即将触底反弹？

◙ China Confidence Crisis Separates Wheat from Chaff 中国企业信任危机 对不同公司各有利弊