Csi Properties Limited · HKEX:497
Csi Properties — Investor Presentation (November 2022)
26 slides from Csi Properties's investor presentation, November 2022
Slide 1: Investor Presentation 1H FY 2023
Investor Presentation 1H FY 2023 Nov 2022 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 1H FY2023 Financial Highlights 4 Section 2 Key Strategies Highlights 18 Section 2 Key Strategies Highlights 16 2
Slide 4: Section 1 1H FY2023 Financial Highlights
Section 1 1H FY2023 Financial Highlights
Slide 5: 1H FY 2023 Sales Highlights
1H FY 2023 Sales Highlights CSI made c.HK$896 million of sales for 1HFY 2023 to ensure good cashflow for the current fiscal period For the period Unrecognised ended Contracted Sales committed 30 Sep 2022 Up to 30 Sep 2022 % HK$'000 HK$'000 Group level Hong Kong residential properties 0 0 Source: Com
Slide 6: 1H FY 2023 Key Disposals
1H FYStrong recurrent 2023 Key income anchoring EBITDA Disposals CSI has recognized a few disposals this fiscal year to ensure profitability Date completed Projects sold and booked for 1H FY 2023 Location May 2022 22/F and 23/F at LL Tower, 2-4 Shelley Street Central Sep 2022 9 units at Knightsbridg
Slide 7: 1H FY 2023 Interim Results Highlights
1H FYPrime Hong Results 2023 Interim Kong properties Highlights focused strategy 1H FY2023 1H FY2022 % change (HK$m) (A) (B) (A/B-1) Gross revenue from property business 231 100 132% Property sale 106 0 Rental income 125 100 Gross profit 125 53 137% Profit from property JV/associates 154 (230) 167%
Slide 8: 1H FY 2023 Interim Results Highlights (contd.)
1H FY 2023 Interim 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 1H FY 2023 FY 2022 (HK$m) 30 Sep 2022 31st Mar 2022 Properties & related assets 24
Slide 9: 1H FY 2023 Key Credit Metrics
1H FY 2023 Key Credit Metrics Key credit metrics 1H FY 2023 FY 2022 FY 2021 (HK$m) (HK$m) (HK$m) EBITDA1 / interest expenses2 1.5x 2.4x 2.3x Net debt / total assets (net gearing ratio) 33.0% 27.0% 36.4% Net debt / adjusted total assets3 27.5% 22.1% 29.2% Net debt plus commitment to JVs /adjusted tot
Slide 10: Consistent Profitability and Growth
Consistent Profitability and Growth Revenue Gross profit and gross profit margin 64% 500 500 100% 420 53% 54% 400 369 400 50% (HKDm) (HKDm) 300 250 231 300 227 25% 200 200 8% 99.67 125 236 13% 100 171 100 142 99.67 106 124 0 0 31 52 6% 0.00 FY2021 FY2022 1H FY2022 1H FY2023 FY2021 FY2022 1H FY2022 1
Slide 11: 1H FY 2023 Credit Highlights
1H FY 2023 Credit Highlights Debt / EBITDA1 EBITDA1 / net interest expense2 and cash3 / short-term debt 42.9x 4 38.9x 31.8x 30.2x 2.3x 2.4x 2.2x (x) 1.8x (x) 18.2x 2 15.9 x 14.8x 1.5x 1.5x 10.3x 0.96x 0.4x FY2021 FY2022 1H FY2022 1H FY2023 0 FY2021 FY2022 1H FY2022 1H FY2023 Total debt / EBITDA Net
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 5.9% (inclusive of PRC projects) for the Gro
Slide 14: Pro-forma Balance Sheet adjusted for market valuation as at 30 Sep 2022
Pro-forma Balance Sheet adjusted for market valuation as at 30 Sep 2022 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$2.08 per
Slide 15: Resourceful Pipeline to Ensure Profitability and Liquidity
Resourceful Pipeline to Ensure Profitability and Liquidity FY 2023 YTD 3 out of remaining 6 residential units at Dukes Place, 47 Perkins Road (60% stake) (1 sold) 50% of remaining residential units at the “Infinity”, Peak Road (65% stake) (2 sold) Remaining upper 2 floors of LL Tower, Shelly Street
Slide 16: Portfolio of Prime Properties in Premier Locations
Portfolio of Prime Properties in Premier Locations (as at 30 Sep 2022) Commercial properties Approximate Book 1 gross area value 1 sq.ft. (000s) (HK$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 3,588 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 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 Sep 2022 • Have renewed a syndicated loan of HK$1.9bn in July 2022 from variou
Slide 20: Prudent Financing with Strong Asset Coverage & Liquidity (debt maturity)
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 Sep 2023, the debt amount due are all secured bank loans from commercial banks which can be rolled over and a
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 ride out the current challenging market to retain liquidity • Install cost and risk manage
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$9 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. 600k 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.400,000 sq. ft. • Quick access 3 mins to MTR Long 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 material valuation upside upon future sale 92-96 Wellington Street c.43k sqft GFA Comm’l Redevelopment 46/48 Cochrane Street. c.32k sqft GFA Completed Comm’l 152-156 Wellington St
Slide 25: High Quality Commercial Portfolio
3 High Quality Commercial Portfolio Strong portfolio with steady rental income and material valuation upside • Hong Kong —— Core Central; Core Kowloon (TST/Jordan) and Kowloon East Novotel Redevelopment 348 Nathan Rd, Hong Kong Health Check Jordan Harbourside HQ Tower (previously Everest c. 254K sqf
Slide 26: Q&A
Q&A 20132018 & 2014 Best HK Mid-Cap Company
CSI Properties — Investor Presentation (November 2022) on 6ix