Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
May’s contracted sales rose 12.2% yoy, representing a continued uptrend since April and rebound from March’s trough. Unfulfilled pent-up demand in 1Q20 continued to support transaction volumes in May. National property prices in the primary and secondary markets remained stable in May. Land sales volume growth slowed in May, but average transacted prices edged up by 31% yoy and land auction premium rate was 17%. Maintain OVERWEIGHT on the sector.
This year's government work report has no special new ideas regarding real estate, which is basically consistent with the previous policies. However, "housing is not for speculation" has become a long-term policy. The real estate industry plays a key role in supporting the economy, especially in the current economic environment. We believe that real estate is still the main pillar of China's economy. Maintain OVERWEIGHT.
With the Covid-19 epidemic under control, the property market is recovering gradually while housing demand has rebounded. In a stable market, the improvement in large developers’ sales will continue to promote industry concentration. Also, signs of policy relaxation in the property market are strengthening to ensure stable industry development, which means long-term investment opportunities for big developers. Maintain OVERWEIGHT.
Revenue from projects sold in 2017-18 was recognised in 2019, with developers’ revenue recognition usually seeing a lag of 2-3 years (from pre-sales to the carryover stage). Therefore, earnings of property developers in 2019 were still significant. Although developers have cut their sales targets for 2020 amid the current market conditions, policy loosening is still expected to take place. Maintain OVERWEIGHT.
2019 results were in line with our expectations with core profit of Rmb5,465m, up 30.0% yoy. Management gave a conservative 2020 contracted sales guidance of Rmb83b, which implies a 6% yoy growth. Meanwhile, the company continues to ramp up its urban redevelopment business which could lead to a gradual expansion in sales margins. Financing cost is also expected to decline 1-2ppt over the next two years. Maintain BUY with a lower target price of HK$18.25.
KEY HIGHLIGHTS Economics Inflation Inflation normalisation disrupted. Strategy Repricing Growth Positive on beneficiaries of reduced mobility restriction, but lowering 2020 real GDP growth to 4.5% yoy. Sector Aviation International traffic likely to remain weak for 2020, but low fuel prices and state support lower risk profile. Results Powerlong Holdings (1238 HK/BUY/HK$5.14/Target: HK$6.61) 2019: Strong sales, in line with our expectation. Times China Holdings (1233 HK/BUY/HK$14.00...
GREATER CHINA Economics Inflation: Inflation normalisation disrupted. Strategy Repricing Growth: Positive on beneficiaries of reduced mobility restriction, but lowering 2020 real GDP growth to 4.5% yoy Sector Aviation: International traffic likely to remain weak for 2020, but low fuel prices and state support lower risk profile. Results Powerlong Holdings (1238 HK/BUY/HK$5.14/Target: HK$6.61): 2019: Strong sales, in line with our expectation. Times China Holdings (1233 HK/BUY/HK$14.00/Target: HK...
Times China is spinning off its property management arm via a Hong Kong IPO. Shareholders as of 2 Dec 19 could receive shares in the spun-off company equivalent to an 11-15% yield. Times China is on track to meet its 2019 contracted sales target and we expect management to maintain a 25% sales growth guidance in 2020. Maintain BUY with a higher target price of HK$18.85.
GREATER CHINA Update Times China Holdings (1233 HK/BUY/HK$15.24/Target: HK$18.85): To spin off property management arm; on track to meet 2019 sales target. INDONESIA Update Bank Tabungan Pensiunan Nasional Syariah (BTPS IJ/HOLD/Rp3,930/Target: Rp3,550): Focusing on existing customers; expect 30% yoy earnings growth in 2020. MALAYSIA Sector Construction: 9M19 performances relatively weaker yoy, dragged by lower recognitions. Expecting partial rollout of projects in 1H20, with improved performance...
1H19 results were in line with our expectations with core profit amounting to Rmb1,701m, up 43.8% yoy. Management maintained its full-year sales guidance of Rmb75b as 49.1% of its target was achieved in 7M19. The improvement in Times’ gross margin was driven by the booking of higher-margin products and urban redevelopment profits. Management notes that gearing and financing costs would remain stable. Maintain BUY with a target price of HK$17.60.
KEY HIGHLIGHTS CHINA Sector Gold Gold back in fashion: Prices jump on trade risk escalation. Results Times China Holdings (1233 HK/BUY/HK$12.50/Target: HK$17.60) 1H19: In line with expectations. Update Yangtze Optical Fibre And Cable (6869 HK/HOLD/HK$12.96/Target: HK$14.80) 1H19 results preview: Overcapacity issue looming on near-term outlook. Upgrade to HOLD as negatives have been fully priced in. HONG KONG Results Wharf REIC (1997 HK/HOLD/HK$45.85/Target: HK$52.86) 1H19: Results i...
CHINA Sector Gold: Gold back in fashion: Prices jump on trade risk escalation. Results Times China Holdings (1233 HK/BUY/HK$12.50/Target: HK$17.60): 1H19: In line with expectations. Update Yangtze Optical Fibre And Cable (6869 HK/HOLD/HK$12.96/Target: HK$14.80): 1H19 results preview: Overcapacity issue looming on near-term outlook. Upgrade to HOLD as negatives have been fully priced in. HONG KONG Results Wharf REIC (1997 HK/HOLD/HK$45.85/Target: HK$52.86): 1H19: Results in line; caught up in a ...
UOB Kay Hian published on 11th July this report on the China Property Sector, which contains 5 actionable investment ideas and includes forecasts for 2019, 2020 and 2021 for the companies’ key data (including net turnover, operating profit, EPS, PER, PBR, ROE and dividend yield). The report has sections on:- * Investment Highlights: page 1; * Determining Housing Demand Based On Population Changes: pages 3 – 7; * Integration In Yangtze River Delta (YRD) Bringing Opportunities: pages 8 – 11;...
With the government’s efforts to foster and develop city clusters in China, we see huge housing demand in core metroplolitan areas arising from urbanisation and cross-regional population flows into those areas. The YRD and GBA will remain the main magnets for population in the future, given their vast potential. Urbanisation rates in YRD (68.5%) and GBA (84.4%) are higher than in the rest of China (59.58%). Maintain OVERWEIGHT. Our top picks are CIFI, Ronshine and Times China.
With the government’s efforts to foster and develop city clusters in China, we see huge housing demand in core metroplolitan areas arising from urbanisation and cross-regional population flows into those areas. Naturally, the YRD and GBA will remain the main magnets for population in the future, given their vast potential. Urbanisation rates in YRD (68.5%) and GBA (84.4%) are notably higher than in the rest of China (59.6%). Maintain OVERWEIGHT with CIFI, Ronshine and Times China as top BUYs.
CORPORATES ISSUER IN-DEPTH 11 January 2018 Source Documents: Offering Memorandum (9 Jan 2018) Peer Group: » Homebuilding See Snapshot User’s Guide for terminology, analytical criteria and our ranking of covenant structures. This report contains Moody's analysis of the principal protections and weaknesses of the covenant package of the Notes based on information contained in the Offering Memor
Rating Action: Moody's assigns B2 to Times Property's proposed USD notes. Global Credit Research- 09 Jan 2018. Hong Kong, January 09, 2018-- Moody's Investors Service has assigned a B2 rating to the USD senior unsecured notes proposed by Times Property Holdings Limited.
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