China Vanke posts 32% profit increase in 2011

China Vanke (000002.SZ), the nation’s largest developer by sales, reported a full-year profit increase of 32% as a result of more small and medium-sized home sales, Bloomberg reported. Vanke’s full year net income rose to RMB9.62 billion (US$1.5 billion), or RMB0.88 a share, up from RMB7.3 billion (RMB0.66 per share) in 2010. Analysts cited the firm’s mass-market strategy as key to its improved sales, especially as the property industry experiences a consolidation brought about by tougher government restrictions on home sales. In a tough market buyers tend to stick with big-name brands such as Vanke, noted Jinsong Du, a Hong Kong-based property analyst at  Credit Suisse. Xiao Li, Vanke’s executive vice president, said she does not expect to see any major changes in China’s property policies, though she added that it will be difficult to predict home prices this year.