Top Investment Banks Identify CFLD as "Top Pick among A-share"

BEIJING, Aug. 20, 2019 /PRNewswire/ -- China Fortune Land Development (CFLD)'s 1H19 results have been rated as "top pick among A-share" and "Maintain Outperform" by J.P. Morgan and Credit Suisse respectively.

The report from J.P. Morgan describes CFLD's solid growth with all-round margin expansion. Two of CFLD's significant business sectors-industry park services and contracted sales, are accelerating, which is seen as the sign of CFLD's recovery from debt. Analysts also expect the growth in both will pick up further in 2H19. Credit Suisse expressed similar opinions, commenting that CFLD's 1H19 results have been largely positive.

While most Chinese developers are facing tightening financing rules, CFLD stands out, easing investors' concerns. According to the J.P. Morgan report, this has been thanks to its "distinctive business model running industry parks." Credit Suisse adds to this by also noting how the "replication of this model remained well on track." Its diversification strategy to mitigate concentration risk is well acknowledged in both reports.

According to Credit Suisse, looking forward, CFLD's partnership with Ping An will boost market confidence and indicates continuing benefits in the years to come.

Finally, the year of 2019 also saw solid brand performance by CFLD, with its recent recognition by Brand Finance as one of the top 10 brands in Real Estate Services 2019.

SOURCE CFLD