Huijing Holdings Company Limited (Initial Issuer Report)

The Issuer Rating reflects Huijing Holdings Company Limited’s (9968.HK) (“Huijing” or “the company”) track record of its contracted sales growth, gradual geographical diversification of its land bank and its above-average profitability. However, Huijing’s rating is constrained by its small operating scale, limited number of projects and geographical concentration of its contracted sales and revenue contributions, and reliance on short-term financings.

The Positive Outlook reflects our expectation that Huijing will sustain its contracted sales growth and deliver its planned projects, while expanding its operating scale and diversifying its land bank in a measured manner. Also, we expect Huijing’s involvement in urban renewal projects (URPs) will help the company to enlarge its land bank, sustain its contracted sales growth and profit margins in the medium term.