Can you feel the ground moving beneath your feet? Shares of China Hgs Real Estate Inc (NASDAQ:HGSH) skyrocket over 130% today after the Chinese real estate firm delivered full year financial results that crushed Wall Street’s expectations in an upside surprise. The shake, rattle and roll generated by today’s earnings report impressed, and in some cases silenced, some big bears.
Highlights for the Fiscal 2017
- Total revenues for the fiscal 2017 were approximately $58.7 million, an increase of approximately 45% from approximately $40.6 million in fiscal 2016.
- For the Company’s long-term real estate development projects, the related revenue recognized from percentage of completion method was approximately $13.4 million, which accounted for 23% of total revenue in fiscal 2017 and decreased 47% from the revenue recognized from percentage completion method in fiscal 2016.
- Net income for the fiscal 2017 totaled approximately $6.3 million, an increase of approximately 26% from the net income of approximately $5.0 million in fiscal 2016.
- Basic and diluted net earnings per share (“EPS”) attributable to shareholders for the fiscal 2017 were $0.14, compared to $0.11 for the fiscal 2016.
China HGS Real Estate is a leading real estate developer in the region and holds the national grade I real estate qualification. The Company focuses on the development of high-rise, sub-high-rise residential buildings and multi-building apartment complexes in China’s Tier 3 and Tier 4 cities and counties with rapidly growing populations driven by increased urbanization. The Company provides affordable housing with popular and modern designs to meet the needs of multiple buyer groups. The Company’s development activity spans a range of services, including land acquisition, project planning, design management, construction management, sales and marketing, and property management.