Country Garden's contracted sales soared 153% to CNY23bn

Its achievement ration beats peers'.

According to Nomura, Country Garden generated contracted sales of CNY23bn over 4M13, representing y-y growth of 153%. Despite its ambitious annual sales growth target of 30% (vs. sector average of 15%), its achievement ratio was satisfactory at 37% (vs. its peers’ 32%).

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Notably, its sales (including subscription sales) during the Labour Day holidays remained strong at CNY3.45bn (+120% y-y).

Given the brisk YTD sales, alongside the additional saleable resources from the newly acquired land parcels over 1Q13 (~10 brand new projects), we think the company should comfortably achieve its 2013 sales target of CNY62bn, with surprise on the upside. We reiterate our Buy rating on the stock.

Country Garden should have new resource of >2mn sqm GFA available for sales in May and June (vs. 1.7mn sqm in 1Q13). This includes five brand-new projects (one in May and four in June), compared with three new projects launch during 1Q13.

To recap, those three new projects have so far contributed aggregate sales of CNY2.1bn (~9% of 4M13 contracted sales), and we expect the increasing saleable resources to further boost the strong sales momentum.