...May 22, 2024 Timely refinancing will sustain capital structure: Qingdao Conson Development (Group) Co. Ltd. (QCD) has increased long-term financing to mitigate refinancing risks. About two-thirds of the company's domestic bond issues had tenors of three years or above in the first four months of 2024, up from about one-third previously. We expect the company's weighted average debt maturity to remain above two years. This lengthening of the debt structure could mitigate access risks to debt markets should there be disruptions, such as any local government financing vehicle delinquency in Qingdao's lower-tier government. Business transformation could take longer than we expect: Funds from operations (FFO) were slightly lower in 2023 due to lower contributions from financial services and property development. We expect QCD to continue its business transformation, albeit at a slower pace. Although the company benefits from its status as a government-related entity and lower onshore funding...
