Xinyuan Real Estate Co. revenues for the second quarter of 2008 increased 17% to $87.7 million from $74.8 million for the second quarter of 2007. Net income for the second quarter of 2008 decreased 9% to $13.2 million from $14.6 million in 2007 due to weaker market conditions caused by tightened credit supply and slowing buyer demand. Revenues for the first half 2008 increased 118% to $212.9 million from $97.7 million in the first half of 2007. Net income for the first half 2008 increased 115% to $46.1 million from $21.4 million in 2007.Xinyuan Real Estate Co. (NYSE: XIN) is a residential developer and property manager of real estate in China. The Company focuses on middle-income consumers in urban areas with above growth in population and income. Xinyuan also develops retail outlets, health facilities and schools.
Xinyuan's chief financial officer, Mr. Frank Ng, stated that Xinyuan Real Estate Co. began one new project in the second quarter, Zhengzhou Xinyuan Colorful Garden, which has total developable gross floor area of over 189,000 square meters. Construction was also completed on approximately 53,600 square meters of gross floor area in the Company's Suzhou Lake Splendid project.
Xinyuan Real Estate Co. closed at $6.06 on September 3, 2008, down 66% from its fifty-two week high of $18.00. Xinyuan develops residential real estate in the most populated country in the world and in a country which is one of the world's fastest growing economies: China. Xinyuan is also a very well managed and fundamentally strong company. Combine this scenario with a stock price that has declined 66% from its fifty-two week high and it would seem that the stock has tremendous upside potential.
The Twenty First Century will belong to China. Investing now in Xinyuan Real Estate Co. appears to be a very good way to own Chinese real estate at discounted prices.
References:
http://biz.yahoo.com/prnews/080902/cntu032.html?.v=17
Company 2008 Second Quarter Results
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