CHINA Vanke Co.,ltd. the biggest developer by market value traded in China, yesterday said 2011 profit rose 32 percent as it sold more small and medium-sized homes that are less influenced by government curbs.
Net income rose to 9.62 billion yuan (US$1.5 billion), or 0.88 yuan a share, from 7.3 billion yuan, or 0.66 yuan, in 2010, Vanke said. The developer would report net income of 9.53 billion yuan, according to the average of 20 analysts' estimates compiled by Bloomberg News.
"Vanke is targeting the mass market, which helped sales," said Jinsong Du, a Hong Kong-based property analyst at Credit Suisse Group AG. "Starting from the second half of last year, China's high-end property market slumped greatly. Also, in a bad market like this, brand name stands out. Buyers tended to buy homes with good and big brand names like Vanke."
Government measures, including raising mortgage and down-payment requirements and imposing home purchase limits in about 40 cities, have curbed speculation, while intending to maintain real demand from homeowners.