Jinke Property Group Co., Ltd. (Initial Issuer Report)

The Issuer Rating reflects Jinke Property Group Co., Ltd’s (“Jinke” or “the company”) established market position in the Chongqing market and evident land bank diversification into eastern China, as well as into southern, central and southwestern China. Jinke has been able to contain its financial leverage while achieving its contracted sales and revenue growth. However, Jinke’s rating is constrained by the execution risk in changing of its business model into an operating efficiency focus, and the continuous stagnant margin growth resulting from the nominal average selling price growth and rising land cost.

The Stable Outlook reflects our expectation that Jinke would defense its established market position, continue to focus on improving its operating efficiency while maintaining steady contracted sales and revenue growth and margins, and diversify its product offerings and land bank with a prudent manner in controlling financial leverage.