Shenzhen Investment (604.HK): Broadly Completed The Exit From Lower Tier Cities October 17, 2017 645

Investment Summary

– Significant rise in gross profit margin, primarily contributed by the recognition of the sales of properties in Shenzhen, whose gross profit margin can be as high as 66% (Overall GPM of Shenzhen: 50.7%)

– Taking advantage of the recovery of property market in Tier 3 and Tier 4 cities, the company further decreased its exposure in these cities and significantly decreased the proportion of these in cities in the land bank to 34%

About the author

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John Wong
Phillip Securities (HK)

Graduated with Masters and Bachelor Degrees from universities in London specializing in Finance and Economics throughout his academic study. Currently focused on property and gaming industry in both PRC and Hong Kong.

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