[ET Net News Agency, 8 August 2019] Moody's Investors Service has assigned a first-time
B1 corporate family rating (CFR) to Zhongliang Holdings Group Company Limited (02772). The
outlook for the rating is stable.
"Zhongliang's B1 CFR reflects the company's strong brand name in second-tier and
lower-tier cities in the Yangtze River Delta region, and robust track record of contracted
sales growth," said Cedric Lai, a Moody's Vice President and Senior Analyst.
Zhongliang, a Shanghai-based property developer, has a strong market position and
well-recognized brand name in second-tier and lower-tier cities in the Yangtze River Delta
region, where there is good demand for residential properties. The Yangtze River Delta
region contributed around 59.4% of the company's contracted sales in 2018.
However, Moody's expects Zhongliang will continue to expand to other regions, such as
Central and Western China, the Bohai Rim Region, and Pearl River Delta, to reduce its
exposure to local regulatory measures and regional economy volatilities.
The company has a track record of robust contracted sales growth, underpinned by strong
housing demand in lower-tier cities over the past two years and strong sales execution. As
a result, the company's contracted sales rose 56% year-on-year to RMB101.5 billion in
2018, following 242% year-on-year growth in 2017. (KL)