As the financial statements of China property companies were released in April, wetake a deep dive into the different aspects of the sector's profitability and financialstrength. Our update to property developer industry analysis is based on 28 majordevelopers1 which together accounted for 40% of national new commodity homesales in 2020. The group of companies are expected to achieve low-teen contractsales growth, and deliver 20% revenue and 22% net profit growth in FY21.Notwithstanding the growth outlook, investor interest in the sector remains low,primarily due to market concerns regarding persistent margin pressure, on the backof rising land prices that keep outgrowing sales prices (with prices capped), suchthat Street earnings expectations risk downward revisions.