Chinese Estates Holdings Ltd. · HKEX:127
Chinese Estates — H1 2004 Earnings Presentation
20 slides from Chinese Estates's earnings presentation, 2004
Slide 1: Corporate Presentation – Interim HKSE Results
Corporate Presentation INTERIM HKSE RESULTS stock code: 01272004 SEHK stock code: 0127 0
Slide 2: Agenda
Agenda • Financial Highlights • Business Review • Prospects • Open Forum 1
Slide 3: Financial Highlights
Financial Highlights 2
Slide 4: Financial Highlights
Financial Highlights 2004 2003 For the period ended Jun 30, HK$’000 HK$’000 Change Turnover 3,558,763 459,666 +674% Gross profit 318,193 303,683 +4.8% Profit attributable 588,509 177,506 +232% to shareholders Basic EPS HK27.9 cents HK7.9 cents +253% Dividend per share HK8.5 cents HK5.0 cents +70% In
Slide 5: 1H2004 Business Summary
1H2004 Business Summary • Gross rental income up 6.4% y-o-y to HK$ 345.7million – Attributed by the acquisitions of Tung Ying Building and Tung Sang Building – Positive growth of retail rental as a result of economic rebound • Property sales revenue of HK$138.9 million from Parc Palais, King’s Park
Slide 6: Key Financial Figures
Key Financial Figures Jun 30, 2004 Dec 31, 2003 Total net asset (HK$M) 14,340* 14,368 Net asset per share HK$6.82 HK$6.64 Average return on equity 8.2% 2.5% Cash and cash equivalents (HK$M) 2,209 929 Gearing ratio (Net debt to equity) 41.2% 42.6% * After 2003 final dividend of HK$253 million and sha
Slide 7: Business Review
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Slide 8: Property Investment - Retail
Property Investment - Retail • Maintained high customer retention rate and quality tenant portfolio • Continued to improve tenants’business turnover • Higher rental for new leases and renewals Property name Occupancy rate Windsor House 97% Excelsior Plaza 100% Causeway Place 100% Wanchai Computer Ce
Slide 9: Property Investment - Office
Property Investment - Office • High occupancy rates maintained despite over-supply of office • Office rents have been recovered since 4Q2003 Property name Occupancy rate 4Q2003 2Q2004 Windsor House 94% 96% MassMutual Tower 86% 86% Harcourt House 89% 92% Tung Ying Building 77% 81% 8
Slide 10: Property Development
Property Development • Continued to focus on premium quality and mid to high-end property projects • Sold 334 residential units of Parc Palais in 1H2004 • Development projects in good progress • Projects scheduled for pre-sale starting from 2H2004 9
Slide 11: Investment in PRC
Investment in PRC • Satisfactory occupancy rates: – Hong Kong New World Tower, Shanghai (34.65% interest): 83% for office; 56% for retail – Hilton Hotel, Beijing (50% interest): 86% – Lowu Commercial Plaza, Shenzhen – Level 1 (79 retail outlets): 98% • PRC investment at around 5-10% of the Group’s a
Slide 12: Prospects
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Slide 13: Business Outlook in 2H2004
Business Outlook in 2H2004 Property Investment Property Development • Positive signal for local economy • Upward momentum for housing and retail industry demand – 68-month long deflation has by – Recovery of buyers’confidence and affordability now levelled off – Undersupply of quality residential –
Slide 14: Positive Growth in Rental Income
Positive Growth in Rental Income Property Name % of tenancy due to review Rate of latest rental renewal 2004 2005 Windsor House Up to 20% 24% 16% Causeway Place Up to 68% 50% 28% Wanchai Computer Centre Up to 17% 39% 53% Silvercord Shopping Arcade Up to 80% 15% 50% • Rental increment will be fully r
Slide 15: Properties Available for Sale in 2H2004 - 2006
Properties Available for Sale in 2H2004 - 2006 Group’s No. of Expected launch Property name Usage interest units date** Parc Palais, King’s Park 10% R 187* in progress (remaining portion) Yeung Uk Road 34.36% SA/Re 960 End 2004 Sheung Shui DD 100 34.36% H 78 Early 2005 Wanchai Road/ Tai 83.59% R/Re
Slide 16: Upcoming Property Development Projects (1)
Upcoming Property Development Projects (1) Sheung Shui DD 100 Parc Palais, King’s Park Wanchai Road / Tai Yuen Street Redevelopment Yeung Uk Road, Tsuen Wan 15
Slide 17: Upcoming Property Development Projects (2)
Upcoming Property Development Projects (2) Mount Beacon, Kowloow Tong No. 31 Barker Road, The Peak No. 55 Conduit Road, Mid-levels 16
Slide 18: Recent Transactions
Recent Transactions • Proposed to dispose properties and assets for total consideration of approx. HK$659 million – No. 31 Barker Road: HK$400 million + profit sharing arrangement – Other residential properties: HK$166 million – Other assets: HK$93 million • Unaudited gain: approx. HK$332 million •
Slide 19: Future Plans
Future Plans • Continue to sell properties in a strategic manner – Several high quality development projects available for sale in 2H2004 and 2005 • Replenish quality residential land bank through land sale applications, URA projects, private tenders and other means • Further improve operational eff
Slide 20: Open Forum
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Chinese Estates Holdings — H1 2004 Earnings Presentation on 6ix