Csi Properties Limited · HKEX:497
Csi Properties — Investor Presentation (June 2023)
26 slides from Csi Properties's investor presentation, June 2023
Slide 1: Investor Presentation FY 2023
Investor Presentation FY 2023 June 2023 0
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is provided by CSI Properties Limited (the "Company") based on information available to it and does not constitute a recommendation regarding the securities of the Company and or its subsidiaries The information contained in this presentation
Slide 3: Table of Contents
TABLE TABLEOF OFCONTENTS CONTENTS Section 1 FY2022 Financial Highlights 4 Section 1 FY2023 Financial Highlights 4 Section 2 Key Strategies Highlights 18 Section 2 Management Strategies Highlights 16 2
Slide 4: Section 1 FY2023 Financial Highlights
Section 1 FY2023 Financial Highlights
Slide 5: FY 2023 Sales Highlights
FY 2023 Sales Highlights CSI made c.HK$2,377 million of sales for FY 2023 (incl. JV and Associates) to ensure good cashflow for the current fiscal period For the period Unrecognised ended Contracted Sales committed 31 Mar 2023 Up to 31 Mar 2023 % HK$'000 HK$'000 Group level Hong Kong residential pro
Slide 6: FY 2023 Recurrent Income and Key Disposals
Strong FY 2023 recurrent income anchoring EBITDA Key Disposals CSI has recognized the following disposals this fiscal year to ensure profitability Date completed Projects sold and booked for FY 2023 Location May 2022 22/F and 23/F at LL Tower, Nos. 2-4 Shelley Street Central Apr 2022 –Mar 2023 16 un
Slide 7: FY 2023 Results Highlights
FY Prime HongHighlights 2023 Results Kong properties focused strategy FY2023 FY2022 % change (HK$m) (A) (B) (A/B-1) Gross revenue from property business 804 420 91% Property sale 546 171 Rental income 258 249 Gross profit 404 31 1,203% Profit from property JV/associates 190 93 104% Other Gains* 163
Slide 8: FY 2023 Results Highlights (contd.)
FY 2023 Results Highlights (contd.) Strong balance sheet and ample liquidity to ensure financial stability Decrease in cash balance is attributable to the full redemption of the perpetual capital securities in Aug 2022 FY 2023 FY 2022 (HK$m) 31st Mar 2023 31st Mar 2022 Properties & related assets 23
Slide 9: FY 2023 Key Credit Metrics
FY 2023 Key Credit Metrics Key credit metrics FY 2023 FY 2022 FY 2021 (HK$m) (HK$m) (HK$m) EBITDA1 / interest expenses2 1.4x 2.4x 2.3x Net debt / total assets (net gearing ratio) 28.8% 27.0% 36.4% Net debt / adjusted total assets3 24.4% 22.1% 29.2% Net debt plus commitment to JVs /adjusted total ass
Slide 10: Consistent Profitability and Growth
Consistent Profitability and Growth Revenue Gross profit and gross profit margin 1,000 500 Gross profit 804 800 400 (HKDm) (HKDm) 258 600 300 420 369 400 200 404 227 250 546 200 100 236 142 171 0 0 31 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 Property Sales Rental Gross profit EBITDA1 Reported net p
Slide 11: FY 2023 Credit Highlights
FY 2023 Credit Highlights Debt / EBITDA1 EBITDA1 / net interest expense2 and cash3 / short-term debt 18.2x 4 15.9 x 15.5x 14.8x 11.1x 2.4x 10.3x 2.3x (x) (x) 2 1.5x 1.4x 1.5x 0.4x FY2021 FY2022 FY2023 0 FY2021 FY2022 FY2023 Total debt / EBITDA Net debt / EBITDA EBITDA / net interest expense Cash / s
Slide 12: Diversified Funding Sources and Well Managed Bank Borrowing
Diversified Funding Sources and Well Managed Bank Borrowing • The Group maintained a conservative approach to its bank borrowings with well balanced and staggered maturities • Bank loans are mostly project loans (land plus construction loans) tied to the real estate investment and development projec
Slide 13: Conservative Capital Structure Backed by Prudent Financial Policies
Conservative Capital Structure Backed by Prudent Financial Policies • Prudent funding and treasury policy with regard to overall business operations Prudent funding and treasury policy • Majority HIBOR-based and effective interest rate ranges from 0.6% to 6.8% (inclusive of PRC projects) for the Gro
Slide 14: Pro-forma Balance Sheet adjusted for market valuation as at 31 Mar 2023
Pro-forma Balance Sheet adjusted for market valuation as at 31 Mar 2023 Properties valued at historical cost basis on book with no revaluation surplus. Even after revaluation adjustment, it still represents significant value in terms of a significant discount to pro forma adjusted NAV of HK$2.07 per
Slide 15: Resourceful Pipeline to Ensure Profitability and Liquidity
Resourceful Pipeline to Ensure Profitability and Liquidity FY 2024E Remaining residential units at “Dukes Place”, No. 47 Perkins Road (60% stake) (1 unit presold) Disciplined and Remaining residential units at the “Infinity”, Peak Road (65% stake) (2 units presold) conservative capital 6 houses at t
Slide 16: Portfolio of Prime Properties in Premier Locations
Portfolio of Prime Properties in Premier Locations (as at 31 Mar 2023) Commercial properties Approximate Book 1 gross area value 1 sq.ft. (000s) (HK$m) G/F, 51 carparks of Capital Centre Wan Chai 17 150 No. 348 Nathan Road (Redevelopment) (CSI – 51%) at 24/9/2021 Jordan (site area 21K) 254 3,673 LL
Slide 17: Section 2 Management Strategies Highlights
Section 2 Management Strategies Highlights
Slide 18: Management Strategy Highlights
Management Strategy Highlights 1 Maintain Prudent Financing with Strong Asset Coverage & Liquidity 2 Manage Disposal Pipeline to Recycle Capital & Crystalise Profit 3 Manage Optimally High Quality Residential and Commercial Real Estate Portfolio 17
Slide 19: Prudent Financing with Strong Asset Coverage & Liquidity
1 Prudent Financing with Strong Asset Coverage & Liquidity • Strong cash and investment balances of over HK3.0 billion together with solid commercial bank support via various syndicated loans and credit lines available at Mar 2023 • Have renewed a syndicated loan of HK$1.9bn in July 2022 from variou
Slide 20: Prudent Financing with Strong Asset Coverage & Liquidity
1 Prudent Financing with Strong Asset Coverage & Liquidity • CSI manage a prudent financing policies with the debt maturity profile spread out quite evenly within the next 5 years • Up until Mar 2024, majority of the debts due are all secured bank loans from commercial banks which can be rolled over
Slide 21: Disposition Pipeline to Recycle Capital & Crystalize Profit
2 Disposition Pipeline to Recycle Capital & Crystalize Profit • Management prioritizes annual asset sales to recycle capital & crystalize profit • Strict and prudent principle of NOT making new acquisitions to retain ample liquidity • Install solid cost and risk management controls to ensure maintai
Slide 22: High Quality Residential Portfolio with Massive Value to be Realized
3 High Quality Residential Portfolio with Massive Value to be Realized • Prime luxury residential portfolio in Hong Kong and China • Current value of these residential projects to be sold within the next few fiscal years totaling approximately HK$8 billion per CSI’s stake • Additional strong contrib
Slide 23: Key Residential Portfolio in Northern Metropolis
3 Key Residential Portfolio in Northern Metropolis CSI has attributable GFA of c. 640k sq.ft. in prime mass residential sites in Yuen Long and Kwu Tong to be realized in future Yuen Long Residential Redevelopment CSI (50%) • Total GFA of c.480,000 sq. ft. (subject to final gov’t approval) Kwu Tong R
Slide 24: High Quality Commercial Portfolio in Central
3 High Quality Commercial Portfolio in Central Strong portfolio in prime Central locations with steady rental income and valuation upside upon future sale 92-96 Wellington Street c.43k sqft GFA Comm’l Redevelopment (certain floors presold strata already) 46/48 Cochrane Street. c.32k sqft GFA Complet
Slide 25: High Quality Commercial Portfolio
3 High Quality Commercial Portfolio Strong portfolio in prime locations with steady rental income and valuation upside on future sale • Hong Kong —— Core Central; Core Kowloon (TST/Jordan) and Kowloon East Novotel Redevelopment 348 Nathan Rd, Hong Kong Health Check Jordan Harbourside HQ Tower (previ
Slide 26: Q&A
Q&A 20132018 & 2014 Best HK Mid-Cap Company