Fang Down 2% on Poor Q4 Revenue
The stock in Fang Holdings Ltd. (NYSE: SFUN) slipped nearly 2% to $1.10 per American depositary share in early trading Friday after the company reported its revenue plummeted in the fourth quarter.
The online real state portal said in a statement today that its revenue in the three months through December was $49.3 million, down 27% year-over-year. Net loss narrowed to $26.2 million compared with $29.4 million in the same period in 2018.
Fang attributed the revenue decrease to its marketing services, which tanked 35% to $29.1 million, primarily on a decrease in aggregate market demand.
It's been a struggle for Fang in the stock market this year and today's poor financial results won't help the company gain momentum. Shares of Fang are now down more than 61% YTD.
Based in Beijing, Fang claims it's a leading real estate internet portal in terms of the number of page views and visitors. Through its platforms, Fang provides marketing, listing, leads generation and financial services for the real estate and home furnishing and improvement sectors. The company has around 74 offices covering 665 cities in China.
"In 2019, we had challenges but also achievements," Mr. Jian Liu, the chief executive officer Fang, said in a statement today.
He added, "For the year of 2020, challenges and opportunities co-exist because of the potential effects of COVID-19. I believe our new initiatives, including online live broadcastings, online exhibitions, and VR live, will be strong drivers of our business."
The good news for Fang is that even with the impact of the Covid-19, it projects to generate a "positive" net income for the full year 2020. It's also important to note that real estate transactions in China are starting to recover. According to the commercial property consultancy Knight Frank, home sales across China's 30 largest cities reached 5,976 on Mar. 31, marking the highest daily total since January.