NEW YORK (TheStreet) -- China HGS Real Estate (HGSH) was gaining 29.6% to $9.76 Tuesday after announcing that it signed its second shanty area rebuilding project agreement with the Hantai District government of Hanzhong City.
The estimated investment in the new shanty area rebuilding project is about $750 million. The local government will coordinate with China HGS Real Estate to implement the reform plans. The company and the government will work together to manage the progress of the project.
"We are excited by signing both the Liangzhou road area and Lianhuachi shanty area rebuilding project agreements with the local government," China HGS Real Estate CEO Xiaojun Zhu said. "These two projects are not only important public welfare projects for the local community to improve housing conditions and people's livelihoods, but also promote local economic development."
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TheStreet Ratings team rates CHINA HGS REAL ESTATE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINA HGS REAL ESTATE INC (HGSH) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."