Csi Properties Limited · HKEX:497
Csi Properties — FY2015 Earnings Presentation
50 slides from Csi Properties's earnings presentation, June 2015
Slide 1: FY2015 Results Presentation
FY2015 Results Presentation June 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: FY2015 Results Highlights
lr | | |e FY2015 Results Highlights
Slide 4: FY 2015 Final Results Highlights
FY 2015 Final Results Highlights (Year ended 31st March) (HK$’m) FY’2015 FY’2014 % change (A) (B) (A/B-1) Gross Revenue from 746 2,578 71% property business - property sale 543 2,370 - rental income* 203 208 Gross Profit 360 940 62% Profit from Property JV/ 74 60 23% Associates Profit Attributable t
Slide 5: FY 2015 Final Results Highlights: Shareholders' Equity
FY 2015 Final Results Highlights (HK$’m) FY 2015 FY 2014 31st Mar 2015 31st Mar 2014 Properties & related assets 9,830 7,980 Cash & bank balances 1,280 1,795 Investments 1,293 1,924 Other assets 159 148 TOTAL ASSETS 12,562 11,847 Bank loans 2,756 2,590 Guaranteed Notes 1,170 1,170 Other liabilities
Slide 6: FY 2015 Key Disposals
FY 2015 Key Disposals Project Selling Price (HK$m) Golden Centre (40% interest)* Sham Shui Po 665 Basement of Ginza Plaza** Macau 288 22/F, AXA Centre Wanchai 221 1 unit & 17 car parking spaces Macau 34 at Broadway Center Notes *: Booked at Share of Results from Associates account due to 40% interes
Slide 7: FY 2015 Key Acquisitions
FY 2015 Key Acquisitions Project Transaction Price (HK$m) 13 Floors of Henan Building Wanchai 330 (all sold) Over 90% interest in Building at Wanchai 543 Wanchai Road (50% interest) Basement floor of Ginza Plaza Macau 200 (all sold) Two floors of Broadway Centre Macau 225 (part strata sold) (60% int
Slide 8: FY 2016 YTD Key Acquisitions and Sales
FY 2016 YTD Key Acquisitions and Sales Projects Acquired YTD Purchase Price (HK$m) Office Land Site (government tender) Kowloon 3,038 (30% interest) Bay Residential Land Site (government tender) FanLing 302 (100% interest) 23 Po Shan Road Site (private sale) Mid Levels 1,200 (20% interest) Projects
Slide 9: FY 2015 Financial Highlights
FY 2015 Financial Highlights FY 2015 FY 2014 (HK$m) (HK$m) Book NAV attributable to Shareholders 8,265 7,774 Pro-forma adjusted NAV attributable to Shareholders 12,970 11,379 Net debt 2,646 1,966 Current ratio 7.65x 7.09x Gearing ratio *(consolidated) 31.3% 31.7% Pro forma Gearing ratio (consolidate
Slide 10: Pro-forma Balance Sheet Adjusted for Market Valuation
Pro-forma Balance Sheet Adjusted for Market Valuation Net Asset Value (HK$’m) Net assets attributable to Shareholders ( audited FY2015) 8,265 Add: Attributable revaluation surplus relating to the Group’s properties held for sale as per independent valuations 2,888 at 31 March 2015* Attributable reva
Slide 11: Visible Disposal and Profitability Pipeline
Visible Disposal and Profitability Pipeline* FY2016 • AXA Centre - Remaining 5 floors and ground floor shop (Current mkt Value HK$1.9b+ vs. book value of HK$553m) • The Platinum in Shanghai (50% stake) (Current mkt value HK$3.6b vs. book value of HK$2.1b) • Remaining units of yoo Residence (50% stak
Slide 12: Disposal Pipeline - List of Major Properties
Prospects - List of Major Properties Investment Properties Date of Gross Area Market Book Current Occupancy Purchase sq ft (‘000) Value(1) Value Annual Rent (%) (approx) (HK$’m) (HK$’m) (HK$’m) G/F, 1506-07,17-21F, Skysign, 69 carparks of AXA Centre Wanchai Aug ‘06 / May'07 98 1,985 553 66 100 Dispo
Slide 13: New Acquisition Highlights
New Acquisition Highlights
Slide 14: Newly Acquired Projects: Kowloon Bay
Newly Acquired Projects Office Building Site, Kowloon Bay • Won the government tender for this land site in May 2015 at premium of HK$3.04bn • Consortium composed of Billion Development (40%), Sino Land (30%) and CSI (30%) • Site area of 40,849 sf with maximum GFA at 490,193 sf • AV amounts to appro
Slide 15: Newly Acquired Projects: FanLing
Newly Acquired Projects Residential site in FanLing FanLing Golf Course • Won the government tender for this land site in April 2015 at premium of HK$302m • Site area of 68,986 sf with maximum GFA at 33,110 sf • AV amounts to approximately HK$9.1k • Plan is to develop into 6 premium luxury houses of
Slide 16: Newly Acquired Projects: Po Shan Road
Newly Acquired Projects 23 Po Shan Road, Mid Levels HK • Purchased this land site in April 2015 at price of HK$1.2bn • Consortium composed of Asia Standard (40%), ITC Properties (40%) and CSI (20%) • Site area of 20,695 sf with redevelop able GFA at c.62,000 sf • AV amounts to approximately HK$19.3k
Slide 17: Corporate Background
Corporate Background
Slide 18: 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 19: 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 20: 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$54,091
Slide 21: Proven Track Record and Superior Investment Return
Proven Track Record and Superior Investment Return Selling Major Projects (up until Mar 2013) Cost Price Increase IRR (HK$’m) (HK$’m) (%) (%) Paul Y. Centre, Kwun Tong (2006-07) 780 1,150 48% 178 - renovation & tenants repositioning No. 88 Gloucester Road, Wanchai (2003-07) 196 783 300% 65 - renovat
Slide 22: Proven Track Record and Superior Investment Return (Detailed List)
Proven Track Record and Superior Investment Return (Detailed List) Purchase Selling VALUE IRR Date of Date of Months Price price CREATION (Annualised) Properties Purchase Disposal of holding HK$ 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 23: Proven Track Record in Profit Growth Cycle
Proven Track Record in Profit Growth Cycle HK$’m Profit Attributable to Equity Holders 1800 1600 $1,754m 1400 1200 1000 $858m $903m $816m 800 $546m 600 (FY’09-11 total) HK$1,791m 400 versus $263m $62m (FY’12-14 total) HK$3,473m 200 0 2009/03/31 2010/03/31 2011/03/31 2012/03/31 2013/03/31 2014/03/31
Slide 24: Proven Track Record in Dividend
Proven Track Record in Dividend HK$’m Dividend Payout 250 $204.0m 200 150 $131.0m 100 $82.3m $106.0m $66.1m $39.5m $40.8m 50 $15.8m 0 2008/03/31 2009/03/31 2010/03/31 2011/03/31 2012/03/31 2013/03/31 2014/03/31 2015/03/31 Proven growth in dividend payout throughout the years with significant upside
Slide 25: Proven Track Record in Net Asset Growth
Proven Track Record in Net Asset Growth HK$’m Net Assets 9,000 $8,265m $7,777m 8,000 $7,085m 7,000 $5,972m 6,000 5,000 $4,237m $3,413m 4,000 3,000 $2,521m $2,508m 2,000 1,000 0 2008/03/31 2009/03/31 2010/03/31 2011/03/31 2012/03/31 2013/03/31 2014/03/31 2015/03/31 Proven growth in net asset for grou
Slide 26: Well Researched and Supported by Institutional Investors
Well Researched and Supported by Institutional Investors Mico Chung 32.80% Value Partners 43.9% Fidelity International c.6.0% Dalton Investments 4.42% Other key funds 5.82% 7.06% Others Shareholding interests based on 10,487 million shares currently outstanding • Mr. Chung’s ownership interest incre
Slide 27: 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 28: 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 29: 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 30: 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 31: Commercial and Residential Portfolio Highlights
Commercial and Residential Portfolio Highlights
Slide 32: 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 5 top floors (17th -21st floors), sky-sign, ground floor and 75 car parking spaces, after sale of the basement and 22nd-24th floors Tenants include AXA
Slide 33: 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 Gross entry yield of 5.5% and targeting yield of 7.5% after r
Slide 34: 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 35: Key Current Investment Projects
Key Current Investment 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 l
Slide 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: Couture Homes – Key Current Projects
Couture Homes – Key Current Projects 3-4 Glenealy, 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 high net
Slide 44: 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 45: 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 46: Key Management Team Bios
Key Management Team Bios Ea | cs!
Slide 47: 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 48: 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 49: 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 50: Q & As
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