May 13, 2010 / 1:23 PM / 8 years ago

UPDATE 2-E-House Q1 profit tops Street, sees Q2 rev below view

* Q1 earnings $0.16/ADS vs est $0.04/ADS

* Results driven by gross floor area, new properties sold

* Shares fall 7 pct (Adds details, background, updates share movement)

May 13 (Reuters) - Chinese real estate services company E-House China Holding Ltd’s EJ.N quarterly profit soared past the consensus view, driven largely by a combination of new properties and gross floor area sold, but it projected second-quarter revenue below market estimates.

For the second quarter, the Shanghai-based company expects to report revenue of $66 million to $68 million.

Excluding revenue from the online real estate business operated by China Online Housing Technology Corp, revenue is expected to be $53 million to $54 million for the period.

Analysts were expecting E-House to report second-quarter revenue of $82.8 million.

In a statement, Chairman Xin Zhou said the Chinese government’s move to stabilize pricing in the real estate market could hurt the company.

“We therefore expect market transaction volume to remain depressed over the next one to three months and transaction prices to show signs of softening,” he said.

In April, China raised mortgage rates and down payment requirements to cool down the red hot property market, in a bid to try and nip rising speculation and restrict credit in the country’s real estate markets.

China’s real estate markets have continued to gather steam, with investments up more than 35 percent in the first quarter.

For the first quarter ended March 31, E-House reported net income attributable to shareholders of $10.6 million, or 13 cents per ADS, compared with $7.1 million, or 9 cents per ADS a year earlier.

Excluding certain items, the company earned 22 cents per ADS.

According to Thomson Reuters I/B/E/S, the company earned 16 cents per ADS, that compares with analysts’ estimates of 4 cents per ADS.

Revenue more than doubled to $71.4 million, as total gross floor area of new properties sold rose 85 percent to 2.5 million square meters. The total value of new properties sold doubled to $3.2 billion for the quarter. ADS of E-House were down more than 5 percent at $14.52 in Thursday morning trade on the New York Stock Exchange. They touched a low of $14.25 earlier in the session. (Reporting by Biswarup Gooptu in Bangalore; Editing by Anne Pallivathuckal)

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