Results Review
March 1, 2013
Jingbian NING
SFC CE Ref: AVT719

Real Estate

RESEARCH
BUY

ningjb@cicc.com.cn

Ziyi YU
Ziyi.yu@cicc.com.cn

Vanke B (200002.SZ)
Sales Top Rmb100bn on Recognition Upside

Financial highlights
(RMB mn) Revenue (+/-) Gross Profit (+/-) Net Profit (+/-) FD EPS (Rmb) (+/-) P/E P/B EV/EBITDA ROE Dividend Yield 2008A 40,992 15% 11,453 6% 4,033 -17% 0.37 36.9 -17% 4.7 2009A 48,881 19% 10,764 -6% 5,330 32% 32% 4.1 0.48 2010A 50,714 4% 15,016 40% 7,283 37% 37% 3.4 0.66 2011E 71,783 42% 20,776 38% 9,625 32% 32% 2.7 0.88 2012E 103,116 44% 26,778 29% 12,551 30% 30% 2.2 1.14 2013E 124,897 21% 31,733 19% 15,299 22% 22% 9.3 1.8 1.39 2013E 143,982 15% 36,535 15% 17,616 15% 15% 8.1 1.5 1.60

2012 EPS hit Rmb1.14, 9.1% better than we expected
In 2012, operating revenue soared 43.7% YoY to Rmb103.1bn, and net profit rose 30.4% YoY to Rmb12.55bn or Rmb1.14/sh, 9.1% better than we had expected, mainly on faster sales recognition. A dividend of Rmb1.80 per ten shares (tax included) was announced.

www.jztzw.net ► Faster sales recognition. Sales increased 43.8% YoY to Rmb101.58bn, and GFA sold surged 60% YoY to 8.99mn sqm, 15.1% better than we expected. But ASP was Rmb11,25/sqm, 中国价值投资网 最多、最好用研究报告服务商 narrowed 2.9% below what we expected, and gross margin
28.6 16.7 20.4 13.3 14.8 10.6 11.3 6.2 22.3 6.7 6.1 12.6% 0.4% 14.3% 0.6% 16.5% 0.8% 18.2% 1.1% 19.7% 1.5% 19.5% 0.4% 18.4% 0.4%

2.9ppt YoY to 26.0%. ► High revenue visibility. Consolidated sales made but not earned were Rmb143.65bn with ASP of Rmb10,602/sqm, slightly lower than in 2011. Healthy financials. At end-2012 the company had net gearing of 23.5%, cash balance of Rmb52.29bn, current liabilities due within one year of Rmb35.56bn and accounts payable from land purchases of Rmb20.99bn. wwwww1 Share information
B-Share 200002.CH HK$15.75 5.71 HK$17.03/8.44 1,315 1,315