Jingrui Holdings Limited (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned a ‘B+’ global scale Long-term Issuer Credit Rating to Jingrui Holdings Limited. The Outlook is Stable.

The Issuer Rating reflects Jingrui Holdings Limited (“Jingrui” or “the company”)’s operating track record and increasing exposure in tier 1 and 2 cities, especially in the Yangtze River Delta. However, Jingrui’s rating is constrained by its small operating scale, weak competitiveness on land acquisition, moderately high financial leverage and lower-than-peer gross margin.

The Stable Outlook reflects our expectation that Jingrui would replenish its land bank portfolio and expand its operating scale in tier 1 and 2 cities while managing its debt growth cautiously and improving its gross margin commensurate with ‘B’ rating category credit profile.