Golden Wheel Tiandi Holdings Company Limited (Initial Issuer Report)

The Issuer Rating reflects Golden Wheel’s established market position with quality property development projects with links or close proximity to metro stations, and stable property investments and metro-leasing business which provide recurring income and healthy margins. However, Golden Wheel’s rating is constrained by its small operating scale and elevated financial leverage from land acquisitions when compared with its peers.

The Stable Outlook reflects our expectation that Golden Wheel will expand its operating scale in a prudent manner especially regarding land acquisitions, while continuing maintaining stable recurring income stream, healthy margins and deleveraging effort.