Csi Properties Limited · HKEX:497
Csi Properties — Investor Presentation (March 2015)
48 slides from Csi Properties's investor presentation, March 2015
Slide 1: Corporate Presentation Mar 2015
Corporate Presentation Mar 2015 (497.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: Corporate Background
Corporate Background
Slide 4: CSI Properties at a Glance
CSI Properties at a Glance One of the fastest growing property investment/ development Who are we? companies in Greater China in the past 10 years Headquartered in Hong Kong with offices in Shanghai and Macau with Where do we operate? approximately 2.0 million sq. ft. of prime properties What’s our
Slide 5: Why Invest in CSI Properties
Why Invest in CSI Properties Proven Track Record 10 years of solid NAV and profitability growth trackrecord with strong and Performance earnings pickup in the forthcoming 3-5 years Combining the repositioning of investment properties for value Profitable Twin Driver enhancement and premium “tailor-m
Slide 6: Strategically Positioned to Capture Opportunity in Greater China
Strategically Positioned to Capture Opportunity in Greater China Shanghai Office o Established in 2006 as first China office of group o Since grown to having 30 professionals o Realized on 2 major commercial repositioning transactions Macau Office o 2 major commercial and 1 o Established in 2014 res
Slide 7: Primer on Macau Market Potential
Primer on Macau Market Potential Key New Market • With an estimated population of around 624,000 living in an area of 31.3 sq. km. (12.1 sq. miles), it is the most densely populated region in the world • GDP grew at 13.1 % in the past decade, with GDP of US$52 billion and Per Capita GDP of US$54,091
Slide 8: Proven Track Record and Superior Investment Return
Proven Track Record and Superior Investment Return Selling Major Projects (up until Mar 2013) Cost Price Increase IRR (HK$’m) (HK$’m) (%) (%) Paul Y. Centre, Kwun Tong (2006-07) 780 1,150 48% 178 - renovation & tenants repositioning No. 88 Gloucester Road, Wanchai (2003-07) 196 783 300% 65 - renovat
Slide 9: Proven Track Record and Superior Investment Return (Detailed List)
Proven Track Record and Superior Investment Return (Detailed List) Purchase Selling VALUE IRR Date of Date of Months Price price CREATION (Annualised) Properties Purchase Disposal of holding HK$ HK$ HK$ 45% of interest in a development vacant developm ent s ite in the Feb 04 Mar 04 2 69,975,000 107,
Slide 10: Proven Track Record in Profit Growth
Proven Track Record in Profit Growth $1,754m Past total HK$1,791m versus Current total HK$3,473m Proven growth in total profit for every 3 year value enhancement cycle for our properties, with all cash profits only with no revaluation gains 10 *Note: Profit for FY 09 was lower due to financial crisi
Slide 11: Proven Track Record in Dividend
Proven Track Record in Dividend Proven growth in dividend payout throughout the years (avg. 4% yield) with significant upside with additional residential sales in the forthcoming years 11 *Note: CSI also spent c. HK$100m in share repurchase since Apr 2014 to boost shareholder’s value.
Slide 12: Proven Track Record in Net Asset Growth
Proven Track Record in Net Asset Growth Proven growth in net asset for group despite challenging markets clearly demonstrates management’s capabilities and skills 12 *Note: NAV for FY 09 was lower due to financial crisis.
Slide 13: Visible Disposal and Profitability Pipeline
Visible Disposal and Profitability Pipeline* FY2015 • AXA Centre - Remaining top 6 floors and ground floor shop (Current mkt Value HK$1.9b+ vs. book value of HK$553m) • Golden Centre in Sham Shui Po (40% stake) (Sold) • Remaining units of yoo Residence (50% stake) (Proposed Sale Value HK$730m) (84%
Slide 14: Well Researched and Supported by Institutional Investors
Well Researched and Supported by Institutional Investors Mico Chung 30.84% Value Partners 43.9% Fidelity International c.6.0% Dalton Investments 4.42% Other key funds 5.10% 6.02% Others Shareholding interests based on 10,487 million, the total number of outstanding shares post top-up placement in Se
Slide 15: Superior Upside Potential in Valuation
Superior Upside Potential in Valuation Price Price % of Market Enterprise P/E P/B Total Debt / Net Debt / Return (08/21/14) (08/21/14) 52-Wk High Cap Value CY13 CY14 CY15 The Latest(1) Assets Equity on Equity Company Ticker (US$) (HK$) (%) (US$mm) (US$mm) (x) (x) (x) (x) (%) (%) (%) Market Cap betwe
Slide 16: Inaugural Bond Issue Opens Up New Financing Avenue
Inaugural Bond Issue Opens Up New Financing Avenue • The Group achieved a major milestone on the capital management front through the completion of our inaugural bond issue in January 2013 through JPMorgan Securities and Bank of America Merrill Lynch • The US$150 million 5 year unrated fixed rate de
Slide 17: Awarded Best Small Cap Company in Hong Kong for 2013 and 2014
Awarded “Best Small Cap Company in Hong Kong” for 2013 and 2014 • The Group was awarded the “Best Small Cap Company in Hong Kong” for 2013 and 2014 in Asia's Best Managed Companies annual poll conducted by FinanceAsia, the leading financial journal in the Asia Pacific region • FinanceAsia has organi
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: Disposal Pipeline
Prospects - List of Major Properties Portfolio information * Gross Area Market Book Current *Based on 100% ownership interest. Source: Latest Company records Date of Occupancy Note (1) As per valuation report by qualified valuers /Actual Sale & Purchase Agreement at end of Mar (approx) Value(1) Valu
Slide 20: Commercial and Residential Portfolio Highlights
Commercial and Residential Portfolio Highlights
Slide 21: 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 6 top floors (17th -22rd floors), sky-sign, ground floor and 75 car parking spaces, after sale of the basement and 23rd/24th floors Tenants include AXA
Slide 22: 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 23: 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 Bank and LG Group etc
Slide 24: Commercial Repositioning Case Example: Novotel Nathan Road Hotel
Commercial Repositioning Case Example: Novotel Nathan Road Hotel 4-star hotel in prime district in Kowloon Novotel Hotel Room for improvement in hotel rates Underperformance in shopping arcade rental Opportunity identified Acquired property with Gaw Capital Partners in Aug 2012 for HK$2.4bn
Slide 25: 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 i
Slide 26: 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 27: 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 28: Couture Homes – Key Past and Current Projects
Couture Homes – Key Past and Current Projects The Hampton, Happy Valley (All Sold) Successful sale of 11 uniquely-themed and furnished luxury units set the foundation for Couture Homes Combination of design concepts from world renowned designers and use of bespoke furnishing key success factors
Slide 29: Couture Homes – Key Current Projects
Couture Homes – Key Current Projects Queensgate - “Dahongqiao” Villa Project, Shanghai Acquired 50% interest in June 2011 for a prime residential site in the luxurious villa district in Dahongqiao area, Shanghai Project named as Queensgate with GFA of approximately 650,000 sq.ft. Only 15 minut
Slide 30: Couture Homes – Key Current Projects
Couture Homes – Key Current Projects Kau To Shan, Shatin Acquisition of Kau To Shan land site through government tender in May 2012 G.F.A. of approximately 50,000 sq. ft. for a cost of HK$531m Plans to develop into 20 luxury villas of approximately 2,000 to 4,000 sq.ft. each Presale set for
Slide 31: Couture Homes – Key Current Projects
Couture Homes – Key Current Projects 3-4 Glenealy Lane, Central Acquisition of this c. 6K sq.ft. site at cost of around HK$669 million G.F.A. of approximately 50,000+ sq. ft. in the heart of Central district next to Lan Kwai Fong Plans to develop into life-style residential tower targeting hig
Slide 32: 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 in with its hi
Slide 33: Residential Case Example: Grosvenor Place at Jardine's Lookout
Residential Case Example: Grosvenor Place at Jardine’s Lookout Prime residential tower at Jardine’s Lookout, renowned Grosvenor Place (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 floo
Slide 34: New Acquisition Highlights
New Acquisition Highlights
Slide 35: Newly Acquired Projects
Newly Acquired Projects Henan Building, Wanchai Office building located on 90-92 Jaffe Road near the MTR station Bought 13 high level floors with GFA of 43,000 sq.ft. at a cost of HK$330m Occupancy at 92% with annual committed rent of c. HK$9m Plan to renovate the exterior wall and lobby of
Slide 36: Newly Acquired Projects
Newly Acquired Projects Yang Ching Road Site, Tuen Mun • The Group acquired this residential land site from government land tender at 513 Yan Ching Road in Tuen Mun for HK$427 million. • GFA of approximately 80,000 sq.ft. • The plan is to develop the site into an upscale residential tower targeting
Slide 37: 1H FY2015 Results Highlights
1H FY2015 Results Highlights
Slide 38: 1H FY 2015 Interim Results Highlights
1H FY 2015 Interim Results Highlights (Period ending 30 Sep 2014) (HK$’m) 1H FY2015 1H FY2014 % change (A) (B) (A/B-1) Gross Revenue from 362 2,164 83% property business - property sale 270 2,060 - rental income 92 104 Gross Profit 114 694 83% Profit from Property 84 41 105% JV/ Associates Profit At
Slide 39: FY 2015 YTD Key Disposals
FY 2015 YTD Key Disposals Project Selling Price (HK$m) Golden Centre (40% interest)* Sham Shui Po 665 Basement of Ginza Plaza** Macau 288 Despite a slower first half due to effect from Occupy Central development, we remain optimistic with our 2H FY2015 disposal pipeline Notes *: Booked at Share of R
Slide 40: FY 2015 YTD Key Acquisitions
FY 2015 YTD Key Acquisitions Project Transaction Price (HK$m) 13 Floors of Henan Building Wanchai 330 Over 80% interest in Building at Wanchai 543 Wanchai Road (50% interest) Basement floor of Ginza Plaza Macau 200 Two floors of Broadway Centre Macau 225 (60% interest)* Residential site at 513 Yan C
Slide 41: 1H FY 2015 Final Results Highlights
1H FY 2015 Final Results Highlights (HK$’m) FY 2015 Interim FY 2014 30th Sep 2014 31st Mar 2014 Properties & related assets 9,472 7,980 Cash & bank balances 1,947 1,795 Investments 1,537 1,924 Other assets 109 148 TOTAL ASSETS 13,065 11,847 Bank loans 3,195 2,590 Guaranteed Notes 1,170 1,170 Other l
Slide 42: 1H FY 2015 Financial Highlights
1H FY 2015 Financial Highlights 1H FY 2015 FY 2014 (HK$m) (HK$m) Book NAV attributable to Shareholders 8,174 7,774 Pro-forma adjusted NAV attributable to Shareholders 11,933 11,379 Net debt 2,418 1,966 Current ratio 5.65x 7.09x Gearing ratio *(consolidated) 33.4% 31.7% Pro forma Gearing ratio (conso
Slide 43: Pro-forma Balance Sheet Adjusted for Market Valuation
Pro-forma Balance Sheet Adjusted for Market Valuation Net Asset Value (HK$’m) Net assets attributable to Shareholders (per interim FY2015) 8,174 Add: Attributable revaluation surplus relating to the Group’s properties held for sale as per independent valuations 2,387 at 30 Sep 2014* Attributable rev
Slide 44: Key Management Team Bios
Key Management Team Bios Ea | cs!
Slide 45: Experienced and Disciplined Management Team
Experienced and Disciplined Management Team Group Senior Management Mr. Mico Chung (Chairman and Executive Director of CSI) 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
Slide 46: 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 of CSI) Prior to joining the Group in 2004, Mr. Wong has over 30 years’ experience in the local and mainland real estate mar
Slide 47: World-Class Architectural and Interior Design Strength
World-Class Architectural and Interior Design Strength COUTURE HOMES (“CH”) – Premium Lifestyle Residential Development Division Mr. Jimmy Fong (Executive Director of CSI and Head of Sales and Marketing Division of CH) Prior to joining the Group in 2011, Mr. Fong has over 20 years solid experience i
Slide 48: Q & As
* ASIA’S CSI Best SH PROPERTIES COMPANIES a s+ & & COUTURE HOMES 2013 & 2014 MR ES Best Small-Cap CSI Properties