Greenland Hong Kong Holdings Limited: Update to credit analysis: Solid credit metrics on growing scale

Greenland Hong Kong Holdings Limited: Update following rating downgrade to B2; rating under review for further downgrade - Credit Opinion – 2022/05/19 – US$ 250.00 – ...On 12 May, we downgraded Greenland Hong Kong Holdings Limited's (Greenland Hong Kong) corporate family rating (CFR) to B2 from B1. The B2 rating was placed on review for further downgrade. Greenland Hong Kong's B2 CFR, which is on review for downgrade, reflects the company's rising contagion risk arising from the increasing liquidity pressure of its parent Greenland Holding Group Company Limited (Greenland Holding, B2 RUR downgrade), volatile sales performance given Greenland Hong Kong's moderate operating scale, and execution risks amid challenging business conditions The B2 CFR also considers Greenland Hong Kong's well-located land banks and adequate liquidity. We expect Greenland Hong Kong's debt leverage, measured as revenue/adjusted debt, to moderate to 140%-150% over the next 12-18 months from 160% for 2021. Meanwhile, its EBIT/interest will decline to 4.5x-4.6x from 5.6x over the same period (see Exhibit 1). This primarily reflects Greenland Hong Kong's declining sales and profitability...

Greenland Hong Kong Holdings Limited: Delay in release of 2021 audited financial results is credit negative - Issuer Comment – 2022/03/28 – US$ 200.00 – ...On 24 March, Greenland Hong Kong Holdings Limited (B1 negative) announced that it will delay publication of its 2021 audited financial results. Instead, the company will publish its 2021 unaudited annual results on 29 March. The delay in release of Greenland Hong Kong's 2021 audited financial results is credit negative but will have no immediate impact on its credit profile. While concerns about Greenland Hong Kong's corporate transparency and information disclosure could weaken the company's funding access, its adequate liquidity would mitigate the concern. We expect Greenland Hong Kong's cash and other cash equivalent resources, together with its operating cash flow, to be sufficient to cover its payment obligations over the next 12-18 months, particularly an $150 million offshore bond maturing in June 2022, despite an expected weakening in operating cash flow due to weaker sales growth. Greenland Hong Kong's liquidity is also supported by the state-owned background of its parent Greenland...

Greenland Hong Kong Holdings Limited: Update following rating downgrade to B1 - Credit Opinion – 2021/12/21 – US$ 250.00 – ...On 16 December, we downgraded Greenland Hong Kong Holdings Limited's (Greenland Hong Kong) corporate family rating (CFR) to B1 from Ba3. At the same time, we changed the rating outlook to negative from rating under review. Greenland Hong Kong's B1 CFR reflects its well-located land banks, adequate liquidity and stable access to certain onshore bank funding. However, the rating is constrained by Greenland Hong Kong's volatile sales performance given its moderate operating scale and execution risks amid difficult business conditions. We expect Greenland Hong Kong's debt leverage, measured as revenue/adjusted debt, to fall to 90%-100% over the next one to two years from 141% for the 12 months ended June 2021 on weak contracted sales. Meanwhile, its EBIT/interest will decline to 2.5x-3.0x from 4.7x over the same period (see Exhibit 1). Nevertheless, these projected metrics position the company's CFR well at the B1 level....

Greenland Hong Kong Holdings Limited: Update to credit analysis - Credit Opinion – 2021/10/22 – US$ 250.00 – ...On 18 October, we downgraded Greenland Hong Kong Holdings Limited's (Greenland Hong Kong) corporate family rating (CFR) to Ba3 from Ba2. At the same time, we have placed the rating under review for further downgrade. Greenland Hong Kong's Ba3 CFR, which is on review for downgrade, reflects its standalone credit profile and a one-notch rating uplift based on our assessment of the likely strong financial support from its parent, Greenland Holding Group Company Limited (Greenland Holding, Ba2 on review for downgrade), if necessary. Greenland Hong Kong's standalone credit profile reflects its well-located land banks and good liquidity. It also takes into consideration its modest operating scale, expected weakening in credit metrics and the execution risks associated with its fast growth plan....

Greenland Hong Kong Holdings Limited: Update to credit analysis - Credit Opinion – 2021/10/06 – US$ 250.00 – ...Greenland Hong Kong Holdings Limited's (Greenland Hong Kong) Ba2 corporate family rating (CFR) reflects its standalone credit profile and a one-notch rating uplift based on our assessment of the likely strong financial support from its parent, Greenland Holding Group Company Limited (Greenland Holding, Ba1 stable), if necessary. Greenland Hong Kong's standalone credit profile reflects its sound credit metrics, well- located land banks, and good liquidity and access to bank funding, given its status as a key subsidiary of Greenland Holding. Its standalone credit profile also takes into consideration its modest operating scale and the execution risks associated with its fast growth plan....

Greenland Hong Kong Holdings Limited: Planned acquisition of Guangzhou Greenland is credit positive - Issuer Comment – 2020/12/14 – US$ 200.00 – ...2020E and 2021E include Greenland Guangzhou Source: Company reports and Moody's Investors Service estimates...

Greenland Hong Kong Holdings Limited: Update following rating affirmation - Credit Opinion – 2020/08/04 – US$ 250.00 – ...Greenland Hong Kong Holdings Limited's (Greenland Hong Kong) Ba2 corporate family rating (CFR) reflects its standalone credit profile and a one-notch rating uplift based on our assessment of the expected strong financial and operational support it will receive from its parent, Greenland Holding Group Company Limited (Greenland Holding, Ba1 stable), if necessary. Greenland Hong Kong's standalone credit profile reflects its solid credit metrics, well-located land banks, and good liquidity and access to funding, given its status as a subsidiary of Greenland Holding. Its standalone credit profile also takes into consideration its moderate operating scale and the execution risks associated with its fast growth. We expect its credit metrics to moderate over the next 12-18 months from the strong levels in 2019, mainly because of debt-funded land bank replenishment and business growth. Still, these ratios will appropriately position the company at the current standalone credit profile....

Greenland Hong Kong Holdings Limited: Update following 2019 results - Credit Opinion – 2020/05/14 – US$ 250.00 – ...Greenland Hong Kong Holdings Limited's (Greenland Hong Kong) Ba2 corporate family rating (CFR) reflects its standalone credit profile and a one-notch rating uplift based on our assessment of the expected strong financial and operational support it will receive from its parent, Greenland Holding Group Company Limited (Greenland Holding, Ba1 stable), if necessary. Greenland Hong Kong's standalone credit profile reflects its solid credit metrics, well- located land bank, and good liquidity and access to funding, given its status as a subsidiary of Greenland Holding. Its standalone credit profile also takes into consideration its moderate operating scale and the execution risks associated with its fast growth. We expect its credit metrics to moderate over the next 12-18 months from the strong levels in 2019 mainly because of debt-funded land bank replenishment and business growth. Still, these ratios will appropriately position the company at the current standalone credit profile....

Greenland Hong Kong Holdings Limited: Update following rating affirmation - Credit Opinion – 2019/10/15 – US$ 250.00 – ...Greenland Hong Kong Holdings Limited's (Greenland Hong Kong) Ba2 corporate family rating (CFR) reflects its standalone credit profile and a one-notch rating uplift based on our assessment of the expected strong financial and operational support it will receive from its parent, Greenland Holding Group Company Limited (Greenland Holding, Ba1 stable), if necessary. Greenland Hong Kong's standalone credit profile reflects its stable credit metrics, well- located land bank and good liquidity and access to funding, given its status as a subsidiary of Greenland Holding. The standalone credit profile also considers its moderate operating scale and the execution risks associated with its fast growth....

Moody's affirms Greenland Hong Kong's ratings; outlook stable - Rating Action – 2019/09/25 – US$ 180.00 – ...MOODY'S CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS OR MOODY'S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained...