Csi Properties Limited · HKEX:497
Csi Properties — FY2021 Earnings Presentation
25 slides from Csi Properties's earnings presentation, June 2021
Slide 1: Final Results FY 2021, June 2021
Strictly confidential FY 2019 Final Results Presentation Jun 2019 Investor Presentation Final Results FY 2021 June 2021 Sep 2017
Slide 2: Disclaimer
1 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 presentati
Slide 3: Table of Contents
TABLE OF CONTENTS Section 1 FY2021 Financial Highlights 3 Section 2 Key Strategies Highlights 17 2
Slide 4: Section 1 FY2021 Financial Highlights
Section 1 FY2021 Financial Highlights
Slide 5: FY 2021 Sales Highlights
Key themes FY 2021 Sales Highlights CSI recorded around HK$1.7 billion of sales (incl. JV/ Associates) this fiscal year For the year ended 31 Mar 2021 % HK$'000 Group level Hong Kong residential properties N/A Hong Kong commercial properties 141,800 Sub-total 141,800 Joint Ventures and Associates PR
Slide 6: FY 2021 Key Disposals
1 Strong recurrent income anchoring EBITDA FY 2021 Key Disposals CSI has recognized a few key disposals within this fiscal period to ensure profitability Date completed Projects sold and booked FY2021 Location Apr 2020 – Mar 2021 8 units of Dukes Place at 47 Perkin’s Road (CSI-60%) Jardine’s Lookout
Slide 7: FY 2021 Key Acquisitions
FY 2021 Key Acquisitions Residential site at Wong Chuk Hang • The Group acquired with other JV consortium partners a residential site at Wong Chuk Hang on the South side of Hong Kong Island through an MTR tender in Jan 2021 • The property is located adjacent to the Wong Chuk Hang MTR station and can
Slide 8: FY 2021 Final Results Highlights
Prime Hong Kong properties focused strategy 2 FY 2021 Final Results Highlights (Period ended 31 Mar) FY2021 FY2020 % change (HK$m) (A) (B) (A/B-1) Gross revenue from property business 369 3,710 90% Property sale 142 3,498 Rental income 227 212 Gross profit 236 1,497 84% Profit from property JV/assoc
Slide 9: Strong balance sheet and ample liquidity
Visible disposal pipeline to further drive EBITDA – 3 annual target to sell c.HK$5-6 billion+ of prime assets FY 2021 Final Results Highlights (contd.) Strong balance sheet and ample liquidity to ensure financial stability FY 2021 FY 2020 (HK$m) 31st Mar 2021 31st Mar 2020 Properties & related asset
Slide 10: FY 2021 Key Credit Metrics
FY 2021 Key Credit Metrics Key credit metrics FY 2021 FY 2020 FY 2019 (HK$m) (HK$m) (HK$m) EBITDA1 / interest expenses2 2.3x 6.3x 2.9x Net debt / total assets (net gearing ratio) 36.4% 31.6% 34.1% Net debt / adjusted total assets3 29.2% 25.5% 25.6% Net debt plus commitment to JVs /adjusted total ass
Slide 11: FY 2021 Financial Highlights
FY 2021 Financial Highlights Revenue Gross profit and gross profit margin 3,710 64% 4,000 3,439 2,000 70% 212 60% 302 40% 3,000 1,500 50% (HKDm) (HKDm) 31% 40% 2,000 1,000 3,137 3,498 30% 369 1,498 1,000 500 1,065 20% 227 10% 142 236 0 0 0% FY2019 FY2020 FY2021 * FY2019 FY2020 FY2021 Property Sales
Slide 12: FY 2021 Credit Highlights
FY 2021 Credit Highlights Debt / EBITDA1 EBITDA1 / net interest expense2 and cash3 / short-term debt 20 18.2x 8 15.9x 6.3x 15 6 9.7x (x) 10 8.4x (x) 4 3.0x 5.0x 2.3x 5 3.8x 2 1.5x 0.7x 0.4x 0 FY2019 FY2020 FY2021 0 FY2019 FY2020 FY2021 Total debt / EBITDA Net debt / EBITDA EBITDA / net interest expe
Slide 13: Well managed balance sheet with prudent gearing
Well managed balance sheet to grow asset portfolio with prudent gearing 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 const
Slide 14: 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 15: Pro-forma Balance Sheet Adjusted for Market Valuation
Pro-forma Balance Sheet Adjusted for Market Valuation as at 31 Mar 2021 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$2.15 per
Slide 16: Resourceful Pipeline to Ensure Profitability and Liquidity
Resourceful Pipeline to Ensure Profitability and Liquidity FY 2022 4 out of remaining 8 residential units at Dukes Place, No. 47 Perkins Road (60% stake) Capital Centre (formerly AXA Centre) - Ground Floor shop and 51 car parks 30% of 11 residential units at “Infinity”, Peak Road (65% stake) Half of
Slide 17: Portfolio of Prime Properties in Premier Locations
Portfolio of Prime Properties in Premier Locations (as at 31 Mar 2021) Commercial properties Approximate Market Book 1, 2 1 gross area value value 1 sq.ft. (000s) (HK$m) (HK$m) G/F, 51 carparks of Capital Centre Wan Chai 17 700 150 No. 348 Nathan Road (Redevelopment) Jordan 254 4,500 2,727 LL Tower,
Slide 18: Section 2 Management Strategies Highlights
Section 2 Management Strategies Highlights
Slide 19: Management Strategy Highlights
Management Strategy Highlights 1 Manage Disposal Pipeline to Recycle Capital & Crystalise Profit 2 High Quality Residential and Commercial Real Estate Portfolio to be Realised 3 Maintain Prudent Financing for Strong Asset Coverage & Liquidity Source: Company information 18
Slide 20: Disposition Pipeline to Recycle Capital & Crystalize Profit
1 Disposition Pipeline to Recycle Capital & Crystalize Profit • Management prioritizes annual asset sales to recycle capital & crystalize profit • Strict and prudent principle of balanced asset sale first before making new acquisitions to ride out the current challenging market • Good cash recycling
Slide 21: High Quality Residential Portfolio with Massive Value to be Realised
2 High Quality Residential Portfolio with Massive Value to be Realised • 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 22: High Quality Commercial Portfolio in Central to be Realised
Visible disposal pipeline to further drive EBITDA – 3 annual target to sell c.HK$5-6 billion+ of prime assets 2 High Quality Commercial Portfolio in Central to be Realised • Strong portfolio with steady rental income and material valuation upside upon future sale Core Central 48 Cochrane St c.32k sq
Slide 23: High Quality Commercial Portfolio in Central to be Realised
2 High Quality Commercial Portfolio in Central to be Realised Strong portfolio with steady rental income and material valuation upside upon future sale • Hong Kong —— Core Central; Core Kowloon (TST/Jordan) and Kowloon East Novotel Hong Kong Health Redevelopment, Check Tower 348 Nathan Rd, (previous
Slide 24: Prudent Financing with Strong Asset Coverage & Liquidity
3 Prudent Financing with Strong Asset Coverage & Liquidity • Strong cash and investment balances of over HK$3.2 billion together with solid commercial bank support via various syndicated loans and credit lines available • In August 2020, we have committed a syndicated loan of HK$1.6bn from various H
Slide 25: Q&A
Q&A 20132018 & 2014 Best HK Mid-Cap Company Source: Company information 24