FLDH group's strategy to focus resources on the Yangtze River Delta, a wealthy region in eastern China, and around Shanghai, has helped drive strong sales turnover, as measured by contracted sales/gross debt, and its expansion in scale.
Focus on Yangtze River Delta: FLDH group's strategy to focus resources on the Yangtze River Delta, a wealthy region in eastern China, and around Shanghai, has helped drive strong sales turnover, as measured by contracted sales/gross debt, and its expansion in scale.
- FLDH to maintain a controlling shareholding in FLH and the operational ties between FLDH and FLH do not weaken
Lower Leverage: FLDH leverage dropped to 40% in 2017, from 45% in 2016, following prudent land acquisitions.
Margin Expansion: FLDH's EBITDA margin, after adding back capitalised interest to cost of goods sold, improved to 27.8% in 2017, from 17.5% in 2016.
Fitch uses a consolidated approach to rate FLDH and its 67.81%-owned (as at end-2017) subsidiary, Future Land Holdings Co., Ltd.
Hong Kong: Fitch Ratings says Future Land Development Holdings Limited's (
FLDH, BB-/Positive) share placement will improve the company's financial profile and mitigate its structural subordination, which will support its ratings.
Hong Kong: Fitch Ratings has upgraded China-based homebuilder Future Land Development Holdings Limited's (FLDH) Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB' from 'BB-'.
Margin Expansion: FLDH's EBITDA margin (after adding back capitalised interest to cost of goods sold) improved to 27.8% in 2017 from 17.5% in 2016.
- Significant decrease in FLDH's shareholding in FLH resulting in a weak linkage between FLDH and FLH based on Fitch's Parent and Subsidiary Rating Linkage criteria