China-Chongqing land rose 4% Citigroup to benefit Western development underestimate unit

Recently announced the acquisition of 468 million yuan in the south of Chengdu City, the project construction of a separate villa to form a pure Villa community in Chongqing, the stock price this morning with the big city, now Rose 3.7% to HK $5.32, deal 6.09 million shares.　　Citi issued a report saying that the target price was raised from HK $7.1 to HK $7.26, which would increase the value of the new acquisition, a 36% premium over the market price. Citi believes that the low valuations of China-Chongqing land, which is 44% more than the net asset value, is an undervalued asset concept unit that benefits from the rapid development of the West.　　The latest acquisition of independent and townhouse homes in Chengdu confirms its view that China and Chongqing are planning to speed up the pace of real estate sales and expansion, which will help further reduce the discount on valuations over equity and help boost current equity. According to Citi, contract sales in the first 5 months of the 2009 fiscal year grew strongly by 160% over a year earlier, about 600 million yuan, equivalent to 60% of the full-year target and more than the full-year sales for the year 2008. But the 1% per-share earnings forecast for fiscal year 2009 was lowered mainly because of rising interest costs after the acquisition of land and an increase of 5.9% and 24.9% per share earnings for fiscal year 2010-2011, as new land reserves were taken into account, adjusting the average sales price forecasts for Chongqing.