Fang Holdings Ltd. (NYSE: SFUN), which operates as a real estate internet portal in China, said it swung to a profit of 5 cents per share, from a loss of 60 cents per share last year, helped by market improvement. The bottom-line was one cent more than the street estimate.
Meanwhile, total revenues of $67.6 million were up 6.8% year-over-year, driven by marketing services. However, it fell shy of the Street consensus of $69.3 million.
Fang management said it remains confident of reporting positive net income for the fiscal year ending December 31, 2019.
SFUN stock gained 4.5% immediately following the announcement. Earlier this month, Fang stock had slipped to an all-time low below $2. The value of the shares has plunged 89% in the past twelve months and 75% since the beginning of the year.
Investor sentiment continues to be bearish and the stock was battered by the recent selloff. Since China’s housing sector is largely insulated from the trade-related tensions, the recent escalation of the tariff war with the US will not have any significant impact on Fang’s operations. That makes the stock an attractive investment option, considering its low price and the ongoing market recovery.
Since the first quarter, the Chinese real estate market has been emerging from the slump – with the leading property developers recording an increase in contracted sales. It is something that adds to Fang’s recovery prospects as it’s financial health is closely linked to the trends in the housing market.
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