Csi Properties Limited · HKEX:497
Csi Properties — Investor Presentation (April 2013)
41 slides from Csi Properties's investor presentation, April 2013
Slide 1: Corporate Presentation Apr 2013
Fiscal Year 2012 Results Jun 2012 資 本 策 略 Corporate Presentation Apr 2013 CSI Properties Limited Stock code - 0497.hk
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is provided by CSI Properties Limited (the "Company") for reference purposes only, and should not be relied upon for the purpose of making any investment decision or for any other purpose whatsoever. The information contained in this presenta
Slide 3: Executive Summary
Executive Summary Mr. Mico Chung, Chairman, acquired control of the Company in 2004 as a platform to expand his property investment business Unique property repositioning model focusing on commercial projects in prime location and premium “life-style” residential properties Leading property in
Slide 4: Why CSI Properties
Why CSI Properties Proven Track Record Value enhancement model generates average annualized IRR of 60% and Performance since inception Combining the repositioning of investment properties for value Profitable Twin Driver enhancement and premium “tailor-made life-style” residential Business Model pro
Slide 5: Our Investment Properties Business Model
Our Investment Properties Business Model – Profitable Strategic Repositioning of Properties Identify Acquire Execute Exit Stabilize Execute Value Rental Yield Enhancement Strategy Formulate Repositioning Plan Strength in Acquiring Properties – Result of High Value Added Capital Expertise and Appreci
Slide 6: Proven Track Record and Superior Investment Return
Proven Track Record and Superior Investment Return Selling Major Projects (up until Sep 2012) Cost Price Increase IRR (HK$’m) (HK$’m) (%) (%) Paul Y. Centre, Kwun Tong (2006-07) 780 1,150 48% 178 - renovation & tenants repositioning No. 88 Gloucester Road, Wanchai (2003-07) 196 783 300% 65 - renovat
Slide 7: Focused Strategy to Capture High Growth Potential in China
Focused Strategy to Capture High Growth Potential in China CSI started operation in Shanghai in 2006 in view of the tremendous potential for China market and led by experienced management team under Ms. Dong Yan Capturing the long term growth potential in China that’s well supported by macro eco
Slide 8: Our Premium Lifestyle Residential Division
- Our Premium Lifestyle Residential Division As a commitment to our positioning on tailor-made, premium lifestyle residential property development, we have rebranded our residential development division under the brand “COUTURE HOMES” Going forward will focus on premium residential development,
Slide 9: The Origin of Couture Homes
The Origin of Couture Homes Purchased a detached houses complex in Tai Tam from a Singapore fund in 2006 for a total of HK$330m (incl. renovation) Working with the award-winning designer team led by Steve Leung, these houses were completely redesigned and furnished with bespoke furnishings and d
Slide 10: Couture Homes as the Key Growth Driver
Couture Homes as the Key Growth Driver The Hampton epitomizes the superior quality of our residential units by combining world-class design concepts together with use of bespoke furniture, fabrics, rugs, vanished wood panels, wall decoration and leather upholstery to set new standards of quality a
Slide 11: Experienced and Disciplined Management Team
Experienced and Disciplined Management Team Group Senior Management Mr. Mico Chung (Chairman and Executive Director) Mr. Chung acquired control of the Group in 2004 as a platform to expand his property investment business. Mr. Chung graduated from University College, University of London and qualifi
Slide 12: Experienced and Disciplined Management Team
Experienced and Disciplined Management Team Investment Property Division Mr. Wong Chung Kwong (General Manager of Hong Kong Investment Property Division and Executive Director) Prior to joining the Group in 2004, Mr. Wong has over 30 years’ experience in the local and mainland real estate markets. H
Slide 13: World-Class Architectural and Interior Design Strength
World-Class Architectural and Interior Design Strength COUTURE HOMES – Premium Lifestyle Residential Development Division Mr. Steve Leung (Vice Chairman) Mr. Leung, a leading award-winning architect and designer recognized internationally, joined the Group in 2012. He graduated from the University o
Slide 14: Proven Financial Track Record
Proven Financial Track Record HK$’m Dividend Declared 250 $199.3m 200 150 100 $82.3m $39.5m $40.8m 50 $15.8m 0 2008/03/31 2009/03/31* 2010/03/31 2011/03/31 2012/03/31 *Note: Profit and dividend for FY 09 were lower due to financial crisis. Superior financial performance year-on-year coupling with st
Slide 15: Proven Financial Track Record
Proven Financial Track Record HK$ cent Earnings Per Share 25 21.32 20 15 10.51 10 7.32 5.19 5 1.00 0 2008/03/31 2009/03/31* 2010/03/31 2011/03/31 2012/03/31 HK$ cent Dividend Per Share 3 2.4 2.5 2 1.5 1.0 1 0.8 0.5 0.5 0.22 0 2008/03/31 2009/03/31* 2010/03/31 2011/03/31 2012/03/31 *Note: Earnings an
Slide 16: Pro-forma Balance Sheet Adjusted for Market Valuation
Pro-forma Balance Sheet Adjusted for Market Valuation Net Asset Value (HK$’m) Net assets attributable to Shareholders (audited) 5,959 Add: Attributable revaluation surplus relating to the Group’s properties held for 2,250 sale as per independent valuations at 31 March 2012 Attributable revaluation s
Slide 17: Strong Commitment of Controlling Shareholder
Strong Commitment of Controlling Shareholder Public Shareholders Mico Chung (53.8%) (46.2%) Shareholding interests based on 9,518 million, the total number of outstanding shares after completion of top-up placement in October 2012 • Mr. Chung recently completed his annual 2% purchase limit to take h
Slide 18: Our Future Goal
Our Future Goal Investment Properties Couture Homes • Commitment to detailed design and top quality finishing, tailored made to aim at • Continue to leverage on established pre-targeted class of lifestyle oriented market strengths and network to identify end-users willing to pay a premium and invest
Slide 19: Massive Upside Potential in Valuation through Stock Re-rating
Massive Upside Potential in Valuation through Stock Re-rating Type of Business Share Price vs NAV Major property developers Close to NAV or slight premium Major property investors 20% - 40% discount Mid-cap property companies 30% - 40% discount CSI Approx. 70% discount • Our current capital structur
Slide 20: Disposal Pipeline
Prospects - List of Major Properties Gross Current/ Area Market Book Date of Committed Occupancy Portfolio information * (approx) Value(1) Value Purchase Annual Rent (%) sq ft (HK$’m) (HK$’m) (HK$’m) (‘000) Investment Property Cubus, No. 1 - 3 Hoi Ping Road (CSI – 25%) (4) Causeway Bay Apr ‘06 60 1,
Slide 21: Q & As
Q & As
Slide 22: Appendix 1: 1H FY 2013 Interim Results Highlights
Appendix 1: 1H FY 2013 Interim Results Highlights
Slide 23: 1H FY 2013 Interim Results Highlights
1H FY 2013 Interim Results Highlights (Period ending 30 Sep 2012) (HK$’m) 1H FY2013 1H FY2012 % change (A) (B) (A/B-1) Gross Revenue from 793 2,511 68% property business - property sale 684 2,402 - rental income 109 109 Gross Profit 478 1,363 65% Profit from Property 16 186 91% JV/ Associates Profit
Slide 24: 1H FY 2013 Interim Results Highlights
1H FY 2013 Interim Results Highlights (HK$’m) 1H FY 2013 FY 2012 30th Sep 2012 31st Mar 2012 Properties & related assets 7,066 5,894 Cash & bank balances 1,847 2,445 Investments 648 646 Other assets 138 64 TOTAL ASSETS 9,699 9,049 Bank loans 2,842 2,655 Convertible Bonds 0 9 Other liabilities 655 41
Slide 25: 1H FY 2013 Interim Results Financial Highlights
1H FY 2013 Interim Results Financial Highlights 1H FY 2013 FY 2012 30th Sep 2012 31st Mar 2012 (HK$m) (HK$m) Book NAV attributable to 6,172 5,959 Shareholders Net debt 1,007 210 Current ratio 4.6x 5.6x Gearing ratio (consolidated) 29.3% 29.3% Committed Property JV/ 822 777 Associate Loans Gearing ra
Slide 26: Appendix 2: Details of Key Investment and Residential Property Projects
Appendix 2: Details of Key Investment and Residential Property Projects
Slide 27: Prime Assets in Top Tier Locations
Prime Assets in Top Tier Locations Portfolio overview CHINA 15 high quality assets in prime locations across Hong Kong and Shanghai with total appraised value of approximately HK$16.4bn1 (HK$10.9bn)2 HONG KONG 12 Shatin 6 Lu Wan Jordan Jing An 4 7 Tsim Sha Tsui Causeway Bay 15 Qing Pu Central 1 3 14
Slide 28: Key Current Investment Projects
Key Current Investment Projects Cubus, Causeway Bay Ginza-style F&B tower located in the heart of Causeway Bay on No.1-3 Hoi Ping Road GFA of 60,000 sq.ft. housing high-end restaurants and lifestyle stores and spas Current market value at approximately HK$1.5bn versus our book value of HK$515m
Slide 29: Key Current Investment Projects
Key Current Investment Projects AXA Centre, Wanchai Grade-A office located on 151 Gloucester Road with prime harbour view Currently still hold 8 top floors (17-24th floors), sky-sign, ground floor and 78 car parking spaces, after sale of the lower floors Tenants include AXA Insurance as its HK
Slide 30: Key Current Investment Projects
Key Current Investment Projects Platinum, Shanghai Grade-A prime office building with 20 storeys located on Taicang Road near XianTianDi in Shanghai Majority of tenants are multi national corporations including the likes of McKinsey (China’s headquarter), Standard Chartered Banks and LG Group et
Slide 31: Key Current Investment Projects
Key Current Investment Projects Novotel Hotel Jordan Acquisition of 50% interest of Novotel Hotel Jordan for HK$2.4 billion completed end of July 2012 GFA of approximately 290,000 sq.ft. with 389 hotel rooms and prime shopping space Estimated gross entry yield of 5.5% and targeting yield of 7.
Slide 32: Couture Homes – Key Current Projects
Couture Homes – Key Current Projects The Hampton, Happy Valley Successful sale of 8 uniquely-themed and furnished luxury units for a combined total of HK$807 million set the foundation for Couture Homes Combination of design concepts from world renowned designers and use of bespoke furnishing ke
Slide 33: Couture Homes – Key Current Projects
Couture Homes – Key Current Projects Barker Road, The Peak Acquired the heritage site at 47 Barker Road in February 2011 at HKD204 million A rare land lot at Barker Road in the ultra premier residential area at the Peak The house will be redesigned and refurbished and will blend with its histo
Slide 34: Couture Homes – Key Current Projects
Couture Homes – Key Current Projects Qing Pu Villas, Shanghai Acquired 50% interest in June 2011 for a prime residential site in the luxurious villa district in Qing Pu District, Shanghai GFA of approximately 650,000 sq.ft. Only 15 minutes driving distance from the Hong Qiao International Airp
Slide 35: Couture Homes – Key Current Projects
Couture Homes – Key Current Projects Kau To Shan, Shatin Acquisition of Kau To Shan land site through government tender G.F.A. of approximately 50,000 sq. ft. for a cost of HK$531m Plans to develop into around 20 luxury villas of approximately 2,500 sq.ft. each with its own private garden and
Slide 36: Appendix 3: Case Studies
Appendix 3: Case Studies
Slide 37: Ongoing Case Example: Novotel Nathan Road Hotel
Ongoing Case Example: Novotel Nathan Road Hotel Novotel Hotel 4-star hotel in prime district in Kowloon Room for improvement in hotel rates Opportunity Underperformance in shopping arcade rental identified Acquired property with Gaw Capital Partners in Aug 2012 Targeting rental yield impro
Slide 38: Ongoing Case Example: Monterey Court, Jardine's Lookout
Ongoing Case Example: Monterey Court, Jardine’s Lookout Prime residential tower at Jardine’s Lookout, renowned Monterey Court (rendering) Opportunity high-end residential district in Hong Kong popular to tycoons identified Acquisition price at HK$19,000 psf for the site with a gross floor area o
Slide 39: Success Case Example: Mohan Building
Success Case Example: Mohan Building Building exterior 12-storey office building situated at the heart of Tsim Sha Tsui shopping district leased to SMEs Before renovation After renovation and trading firms Opportunity identified Poorly managed, mismatched location and positioning Acquired prop
Slide 40: Success Case Example: AXA Centre
Success Case Example: AXA Centre Headquarter of AXA Insurance with sweeping Lift lobby view of Victoria Harbour Opportunity Acquired 51% interest from AXA Insurance in Aug Before renovation After renovation identified 2006 and subsequently increased ownership to c.90% in 2007 Total acquisition
Slide 41: Success Case Example: The Hampton, Happy Valley
Success Case Example: The Hampton, Happy Valley The Hampton Acquired the whole building with 15 units in May 2008 for HK$290mm (HK$7,800 psf) from Nan Fung Development Spent HK$170mm to substantially rebuild and convert existing15 units into 11 larger sized apartment units All-in cost of HK$12