K. Wah International Holdings Limited · HKEX:173
K. Wah International — H1 2018 Earnings Presentation
32 slides from K. Wah International's earnings presentation, Aug 22, 2018
Slide 1: 2018 Interim Results: Delivering Value with Distinctive Quality
Hong Kong Stock Code 00173 2018 Interim Results 22 August 2018 Delivering Value with Distinctive Quality 1www.kwih.com
Slide 2: Disclaimer
Disclaimer Some information contained in this presentation has been obtained from public sources that are believed to be reliable but has not been independently verified. There is no guarantee, representation or warranty provided for the accuracy or completeness for the information contained in this
Slide 3: Table of Contents
Table of Contents Results highlights • Financial highlights • Review of property development • Review of property investment Strategy and Outlook • Premium assets in prime cities • Diversified land acquisition channels • Visible pipeline in Hong Kong and Mainland China • Building up investment portf
Slide 4: Results highlights
K. City, Hong Kong Palace Lane, Shanghai Results highlights 4
Slide 5: Financial Highlights
Financial Highlights For the six months ended 30 Jun (HK$ million) 2018 2017 Revenue 623 4,918 Attributable Revenue* 679 5,207 Profit Attributable to Equity Holders 578 2,162 Underlying Profit 32 1,293 Basic EPS (HK cents) 18.88 73.06 Interim Dividend (HK cents) 6 5 * Attributable Revenue comprises
Slide 6: Solid Financial Position
Solid Financial Position As at 30 Jun As at 31 Dec (HK$ million) 2018 2017 Total Assets 74,267 72,507 Cash and Cash Equivalents(1) 6,183 5,849 Total Debts 20,867 18,479 Shareholders’ Funds 35,070 35,003 NAV per Share (HK$) 11.5 11.5 Gearing Ratio(2) 40% 34% EBITDA / Interest(3) 1x 12x Remarks: 1) In
Slide 7: Well-managed Debt Profile with Low Borrowing Cost
Well-managed Debt Profile with Low Borrowing Cost • 5-year revolving credit and term loan facility of HK$7 billion closed in Jan 2018 at lower cost to extend the debt maturity profile, thus enhancing the financing flexibility and funding capability • Managed to maintain the average interest rate at
Slide 8: Foreseeable Results Provide Sustainability
Foreseeable Results Provide Sustainability • In 1H 2018, attributable contracted sales* amounted to HK$8.5 billion HK$8.2 billion sales YRD 15% to be booked in HK$0.3 billion coming 24 months sales booked in 1H 2018 Hong Kong PRD 8% HK$8.5 billion 77% HK$8.5 billion Breakdown by Breakdown by booking
Slide 9: Foreseeable Results Provide Sustainability
Foreseeable Results Provide Sustainability • Major projects with contracted sales to be recognized in 2H 2018 and beyond: K. City and Solaria in Hong Kong, The Peak and Royal Creek in Nanjing, J Metropolis (UpTown), Le Palais in Guangzhou and Silver Cove ph III in Dongguan Hong Kong Nanjing Solaria
Slide 10: Recurring Income from Diversified Investment Portfolio
Recurring Income from Diversified Investment Portfolio • Rental income up 25% to HK$325 million in 1H 2018 • Diversified portfolio: office, commercial, serviced apartment and hotel with total attributable GFA ~210,000 sqm Office Serviced apartment Shanghai K. Wah Centre 上海嘉華中心 Stanford Residences Ji
Slide 11: Recurring Income from Diversified Investment Portfolio
Recurring Income from Diversified Investment Portfolio • Launched new serviced apartment in Stanford Residences Xu Hui in Shanghai during 1H 2018 • Palace Lane, in The Palace in Shanghai, and J Town, in Silver Cove in Dongguan fully opened, with satisfactory occupancy Serviced apartment Commercial S
Slide 12: Strategy and Outlook
G89, Nanjing Solaria, Hong Kong Strategy and Outlook 12
Slide 13: Premium Assets in Prime Cities
Premium Assets in Prime Cities • Continue to focus on Hong Kong and prime cities in Mainland China, especially in the Yangtze River Delta and Pearl River Delta regions while proactively exploring opportunities in the nearby cities where the Group is yet to have presence Nanjing Suzhou Kunshan Shangh
Slide 14: Diversified Land Acquisition Channels
Diversified Land Acquisition Channels • Formed strategic partnerships to tackle the competitive market condition under various austerity measures Location Project Total GFA (sqm) Interest Kunshan Lot 12-2 in Economic & Technological 66,000 16.6% (崑山) Development Zone (經濟技術開發區12-2地塊) Suzhou Lot 58 in
Slide 15: Enhancing Investment in the Greater Bay Area
Enhancing Investment in the Greater Bay Area • Obtained a new land site in Dongguan (東莞) in early August 2018 Continue to capture the opportunities in the Greater Bay Area Site 2018WG12 Silver Cove (星際灣) 15
Slide 16: Visible Pipeline in Hong Kong and Mainland China
Visible Pipeline in Hong Kong and Mainland China • Pre-sale for Solaria in Hong Kong in Jun 2018 received an overwhelming response with nearly 700 units sold for more than HK$6 billion (up to 15 Aug 2018) Solaria 嘉熙 • Launched UpTown in Guangzhou in Apr 2018, ~75% of units sold (up to 15 Aug 2018) U
Slide 17: Visible Pipeline in Hong Kong and Mainland China
Visible Pipeline in Hong Kong and Mainland China • New projects ready to be launched in 2018/2019 Location Project Attri. GFA (sqm) Units Hong Kong Kai Tak Area 1K Site 2 53,000 TBC Shanghai Windermere (嘉濤灣) 71,000 256 Azure (嘉瀧匯) 16,000 126 The Palace III (嘉御庭三期) 43,000 106 • Projects under partner
Slide 18: New projects ready to be launched in 2018/19
New projects ready to be launched in 2018/19 Kai Tak Azure Area 1K Site 2 嘉瀧匯) 啟德發展區 德發展區 ( ( 第 區號 Hong Kong 1K 2 ) Shanghai • Located in the heart of the Kai Tak Area • Within well-developed residential area with good • Synergy with K. City transportation links to the Pudong CBD The Palace III 嘉御庭三
Slide 19: Sustainable Pipeline in Hong Kong and Mainland China
Sustainable Pipeline in Hong Kong and Mainland China • Projects to be launched beyond 2019 Kam Sheung Road Station Cheung Sha Wan project Kam Sheung Road project 19
Slide 20: Sustainable Pipeline in Hong Kong and Mainland China
Sustainable Pipeline in Hong Kong and Mainland China • Projects to be launched beyond 2019 Shanghai Weifang Village Street project, Pudong District Nanjing Suzhou G89, Jiangning District Lot 42, National Hi-Tech District 20
Slide 21: Sustainable Pipeline in Hong Kong and Mainland China
Sustainable Pipeline in Hong Kong and Mainland China • Projects to be launched beyond 2019 Guangzhou Xinhuazhen West Site, Huadu District Jiangmen East Station Jianghai Site No. 12 Jiangmen Jianghai Site No. 02 Jianghai Site No. 02 & 12, Jianghai District 21
Slide 22: Building up Investment Portfolio
Building up Investment Portfolio • Expanding the portfolio with various types of property: K. WAH Plaza, Guangzhou are planned for SOHO offices, office premises, hotel and retail facilities, with GFA 86,000 sqm to be completed in 2019 Office building at Suhe Creek, Jingan District, Shanghai, with GF
Slide 23: Solid Foundation for Long-term Sustainability
Solid Foundation for Long-term Sustainability 1 Encouraging sales underpins results ahead 6 2 Solid financial position High visibility of project fuels future growth pipeline with enhanced asset turn 5 3 Disciplined land Expansion in recurring replenishment at income portfolio to opportune time to d
Slide 24: Appendix: Projects Summary
Appendix: Projects Summary 24
Slide 25: Major Projects in Hong Kong
Major Projects in Hong Kong 4 2,3,6 10 Development projects 8 深灣9號 Kai Tak Area 1K Site 2 11 5,7 啟德發展區第 區 號 1 Marinella 7 1K 2 2 Grampian Road 嘉林邊道2號 Providence Bay 2 天賦海灣 8 Providence Peak 9 30 Po Shan Road 寶珊道30號 3 溋玥．天賦海灣 Kam Sheung Road Station 9 The Spectra 朗屏8號 10 Project (ph 1) 錦上路站項目 (一期) 4
Slide 26: Development Projects in Hong Kong
Development Projects in Hong Kong Year of first sales launch GFA# % Sold Group’s Target KWIH’s Property Portfolio 2017 or 2018 or Beyond (sqm) as of Interest completion before 2019 2019 (approx.) Jun 2018 Marinella深灣9號 69,300 ~ 99% 35% Completed Providence Bay 天賦海灣 78,400 ~ 99% 15% Completed Provide
Slide 27: Major Projects in Yangtze River Delta
Major Projects in Yangtze River Delta 南京市 Nanjing City 7 6 4 1 5 2 8 3 9,10 上海市 11 Shanghai City Development projects Weifang Village Street project, Pudong Lot 42 in National Hi-Tech District, Suzhou 上海靜安區嘉天匯 上海浦東區濰坊新村街道項目 Grand Summit, Jingan District, Shanghai 5 District, Shanghai 蘇州高新區 地塊 9 1 42
Slide 28: Development Projects in Yangtze River Delta region
Development Projects in Yangtze River Delta region Year of first sales launch GFA % Sold Group’s Target KWIH’s Property Portfolio 2017 or 2018 or Beyond (sqm) as of Interest completion before 2019 2019 (approx.) Jun 2018 Grand Summit, Jingan District, Shanghai 上海靜安區嘉天匯 68,000 ~ 99% 100% Completed Ph
Slide 29: Major Projects in Pearl River Delta
Major Projects in Pearl River Delta Development projects Integrated Project, Huadu District, 1 Guangzhou 廣州花都大型綜合項目 Huadu Jiahua Plaza, Guangzhou 2 廣州花都嘉華廣場 Le Palais, Huadu, Guangzhou 3 廣州花都嘉爵園 Silver Cove, Shilong Town, 4 Dongguan 東莞石龍鎮星際灣 Site 2018WG12, Chashan Town, Dongguan 東莞茶山鎮 地塊 5 2018WG12
Slide 30: Development Projects in Pearl River Delta region
Development Projects in Pearl River Delta region Year of first sales launch GFA % Sold Group’s Target KWIH’s Property Portfolio 2017 or 2018 or Beyond (sqm) as of Interest completion before 2019 2019 (approx.) Jun 2018 Integrated Project, Huadu District, GZ 廣州花都大型綜合項目 J Metropolis, Xinhuazhen East S
Slide 31: Major Investment Properties
Major Investment Properties GFA Group’s Status / KWIH’s Investment Properties Type (sqm) Interest Target completion (approx.) J SENSES Commercial 3,400 100% Completed Hong Kong Chantilly 肇輝臺6號 Residential 5,100 100% Completed 嘉悅商業部份 Commercial Complex at Twin Peaks Commercial 3,500 100% Completed Sh
Slide 32: Thank You!
Thank You! 32
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