Post Earnings Coverage as China HGS Reported a Dismal FY16 Results

Upcoming AWS Coverage on Gazit-Globe Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 4, 2017 / Active Wall St. announces its post-earnings coverage on China HGS Real Estate Inc. (NASDAQ: HGSH). The Company released its financial results for the full year 2016 (FY16) on December 21, 2016. The Hanzhong, China-based company’s real estate sales and net income declined approximately 50% and 84% y-o-y, during the reported period. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of China HGS Real Estate’s competitors within the Real Estate Development space, Gazit-Globe Ltd. (NYSE: GZT), reported on November 23, 2016, its financial results for the Third Quarter ended September 30, 2016. AWS will be initiating a research report on Gazit-Globe in the coming days.

Today, AWS is promoting its earnings coverage on HGSH; touching on GZT. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=HGSH

http://www.activewallst.com/registration-3/?symbol=GZT

Earnings Reviewed

For the year ended September 30, 2016, China HGS real estate sales was $40.58 million which came in much below the $81.12 million reported in the year ago same period. The Company reported net income of $5.02 million, or $0.11 per diluted share, in FY16 compared to $31.43 million, or $0.70 per diluted share, in FY15. Due to foreign exchange translation adjustments of $7.60 million, the Company reported comprehensive loss of $2.59 million in FY16 versus a comprehensive income of $26.24 million in the prior year.

Operating Metrics

In the reported year, China HGS’s cost of real estate sales was $28.67 million compared to $39.26 million in FY15. The Company’s gross profit fell to $9.80 million during FY16 from $36.66 million recorded in the last year. For the reported period, the Company’s selling and distribution expenses came in at $1.12 million versus $0.92 million in the same period one year ago. The Company reported general and administrative expenses of $2.47 million in FY16 compared to $2.30 million in FY15. Furthermore, the Chinese real estate Company’s operating income declined during FY16 to $6.22 million from $33.44 million in the previous year.

Cash Flow and Balance Sheet

In the year ended on September 30, 2016, China HGS’s net cash used in operating activities was $76.95 million compared to net cash provided by operating activities of $10.25 million in the last year period. As of September 30, 2016, the Company had cash balance of $6.40 million compared to $1.33 million at the close of books on September 30, 2015. Furthermore, the Company had reported restricted cash balance of $1.49 million in its books of accounts as on September 30, 2016, versus $1.72 million as on September 30, 2015.

Stock Performance

China HGS Real Estate’s share price finished yesterday’s trading session at $1.98, rising 3.66% from its previous day’s closing price of $1.91. A total volume of 64.61 thousand shares exchanged hands, which was higher than the 3 months average volume of 24.38 thousand shares. The stock has advanced 16.47% and 18.56% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have gained 3.66%. The stock is trading at a PE ratio of 17.84 and currently has a market cap of $84.07 million.

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