Citigroup assigns "buy" rating for Shimao Property

Published: 08 Oct 2009 19:40:28 PST

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Oct. 9, 2009 (China Knowledge) - Citigroup Inc recently assigned "buy" rating for Shimao Property Holdings Ltd<0813>, raising the stock's target price to HK$19.47 from HK$18.55, sources reported.

The brokerage said that Shanghai-based Shimao has strong brand name, solid sales performance, good cost control and robust financial position, and that it has the highest potential to become top-tier developer for its solid land procurement ability, cheap and sizeable landbank portfolio and proven expansion capability.

Citigroup also raised forecast for Shimao's profit by 11.7% to 12.9%, because of the expecte gains from its projects in Shanghai.

Shimao Property earlier said its net profit rose 30.42% from RMB 919.1 million a year ago to RMB 1.2 billion for the first half of the year, thanks to booming contracted sales.

Shares of the Chinese developer rose 2.3% to HK$14.66 on Thursday.