The shares fell 1.5 percent to HK$3.88 at the local close in Hong Kong, the lowest since Dec. 31, after having the biggest decline since Dec. 18. The profit warning is mainly because the company completed fewer properties compared with 2011, Shui On said in a statement to the Hong Kong stock exchange today.
Chinese home sales growth slowed last year as the government maintained property curbs started almost three years ago. The country will stick to home purchase restrictions and will “strictly” curb speculative housing demand in 2013, the official Xinhua News Agency reported last month, citing the Ministry of Housing and Urban-Rural Development.
“It’s not really a surprise that the company couldn’t meet the target,” said Jeffrey Gao, a Shanghai-based property analyst at Macquarie Capital Securities, in a telephone interview today. “They pay a lot of attention to details at their projects, so their schedule for launches is usually very late in the year.”
SOCAM Development Ltd. (983) cut its holding in Shui On Land to 22.4 million shares, or 0.37 percent, through a private placement last month.
There was still “some distance” to Shui On spinning off the Xintiandi unit, which developed the Xintiandi entertainment complex from century-old homes in Shanghai, and selling shares in Hong Kong, Apple Daily reported in November, citing Chief Executive Officer Freddy Lee.
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