- 1H25 results turned on profit on better-than-expected margins. Yanlord reported 1H25 results that came in above our estimates with a reversal in attributable shareholder profit to RMB379m (vs. RMB486m loss in 1H24), tracking ahead of our original full-year estimate of RMB876m loss.
1H25 results back in the black.
- - Read this at SGinvestors.io -
- Gross margin came in at 32.3% (+19.2ppts y-o-y) due to more favorable revenue mix (contribution from rental income and property management +10ppts to 17%) and lower inventory impairment of RMB248m (vs. RMB730m in 1H24). SG&A as a % of presales improved 0.5ppts to 8.2%.
- Share of profit from JV and associates jumped 2.6x to RMB130m, above expectations.
- - Read this at SGinvestors.io -
Paying down existing debt.
- Total debt fell 1% h-o-h and cash level fell by a larger magnitude of 18% h-o-h as of Jun-25 due to weaker OCF from presales decline. Net gearing +4.7ppts h-o-h to 46.0% and near-term liquidity seems manageable with cash or short tern debt ratio at 1.2x and free cash (excl. presales escrow account) / short term debt at 0.97x.
- Subsequent to the reporting period, Yanlord has repurchased its only outstanding US$ senior note in the public bond market (outstanding balance: US$379.7mil).
Operational strategy remains defensive.
- Read more at SGinvestors.io.
