[photopress:Poly_culture.jpg,full,alignright]Poly Real Estate Group, China’s third-largest listed developer by market value, said profit rose 62 percent last year as it sold more houses and property prices rose. Net income jumped to RMB658.8 million ($85 million), or RMB1.42 a share in 2006, from RMB407 million a year earlier.
China’s economic growth has averaged 10% a year for the past five years, fueling property demand and pushing up prices. Poly, controlled by China’s State Council, plans to sell shares as it seeks RMB13.4 billion to fund housing developments in Beijing, Shanghai and other cities.
Wang Deyong, a Citic Securities analyst in Beijing put it neatly: ‘There are no investment risks for the company, no matter how fast it expands. Poly’s government ties enable the developer to better understand the market and policies.’ He added that Poly’s net income may rise about 60% this year.
Poly plans to sell 350 million new shares in Shanghai later this year. The company raised RMB2.09 billion in an initial share sale last year. Poly is controlled by China Poly Group, a former unit of the People’s Liberation Army now controlled by the State Council.