Just bot b4 lunch time at 1.6 ;)

Personally I think $1.60 is an amazingly low price considering that it is WAY BELOW its NAV and it's historical PE. Everybody seems to be very bearish with this counter with all the government cooling measures going on. Other property players in China are also suffering the same fate... Vanke, Shimao, you name it. I think this counter is certainly WAY OVERSOLD judging from the price dip after news that the cooling measures had little effect on the china property market, and then dipped further when fresh measures are unveiled.

In my opinion its CEO Zhong Sheng Jian is a visionary and highly competent leader - he has just been awarded the Businessman of the Year under Singapore Business Awards 2010, and he is one of the few billionaires in Singapore and China but prefers to keep a low profile.

If you are a firm believer of contrarian investing, it makes every sense to collect bit by bit during a bear trend, because sooner or later, the market will realise that it has been oversold and rebound to even greater heights. Why I am confident of this happening is because Yanlord is a very well-managed company with strong fundamentals, has an excellent branding in China. Yanlord is described to be synonymous with high-class, luxury residential living in China. Furthermore, the luxury residential market is one that has relatively little competition given its high barrier of entry, meaning that it would have a higher profit margin.

These are qualities that Warren Buffett look out for in a company that he wants to buy.

And of course, the fact that Chinese are becoming increasingly wealthy means that cooling measures will likely have a temporary but not permanent effect on the stock. Just like in Hong Kong, property prices are the highest in the world but many are still willing to pay the high price for a piece of real estate there. Major cities in China will inevitably follow that trend as they become increasingly globalised.

OK, enough of bullshit from me. Bottomline is I am absolutely bullish on this stock and I am thinking of buying more when it dips lower. If your faith in this counter is wavering, feel free to post your views so we can all discuss openly based on facts. If you have any alternative views, I'm more than happy to hear them. Cheers!

 Yanlord successfully acquires 149,700 square metre (“sqm”) gross floor area (“GFA”) prime residential development site in Longgang Town Centre of Longgang District, Shenzhen for RMB945.0 million.  Ideally situated within the Longgang Town Centre, the site is in close proximity to the Baolong Industrial Park and is to be linked to Luohu, Shenzhen’s city centre via a 20 minute drive. This latest acquisition further capitalises on key initiatives by the government to develop 2.5 million sqm residential district with a comprehensive suite of amenities in this area. 

 

/sgx masnet/