Credit Suisse has raised its price target for Greentown China (HKG:3900) from HK$2.8 to HK$3.76 and maintained the stock's Underpeform rating.

Greentown China's year 2011 underlying attributable net profit of RMB2.3 billion, up 88% on year, was 20% above Credit Suisse's forecast. As at the end of 2011, Greentown China's net gearing was at 220%, improved from 245% for the first half of 2011.

Greentown China targets its 2012 contract sales at RMB40 billion, up 13% on year, which is based on 6 million square metres of saleable GFA during the year. Given its products' relatively higher price and less commercial properties in its product mix, Credit Suisse considers uncertainties still exit in its sales. As at end-March, its sales were at RMB6.7 billion, down 34% on year.

Source:chinesestock.org