Yuzhou Group Dollar Bonds, Shares Decline After Profit Warning
March 22, 2021 09:49:12.678 GMT
(Bloomberg) -- Dollar bonds and shares of Chinese developer Yuzhou Group fell Monday after the company warned of weaker earnings.
* Its note due 2026 dropped 1.9 cents on the dollar to 103.5 cents as of 5:39pm in Hong Kong, on track for biggest decline since August’s sale, according to prices compiled by Bloomberg
** Yuzhou’s dollar note due 2027 fell 1.9 cents to 95.4 cents, poised for biggest drop in six weeks
* Shares declined for a fifth day in Hong Kong, shedding 5.3% to post largest fall in six months
* Firm said 2020 consolidated net profit will decrease significantly versus 2019 due to delay in development progress of some property projects and lower margins from regulatory control measures
* “The company’s highly levered financial risk profile will likely remain stretched, as it requires funding for construction works and for expansion,” Chuanyi Zhou, a credit analyst at Lucror Analytics in Singapore, wrote in a note
** However, Zhou added Yuzhou’s contracted sales have been robust and expansion has been prudent
By Bloomberg News