Csi Properties Limited · HKEX:497
Csi Properties — H1 FY2022 Earnings Presentation
25 slides from Csi Properties's earnings presentation, November 2021
Slide 1: Investor Presentation – 1H FY 2022
Strictly confidential FY 2019 Final Results Presentation Jun 2019 Investor Presentation – 1H FY 2022 November 2021 Sep 2017
Slide 2: Disclaimer
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 presentation
Slide 3: Table of Contents
TABLE OF CONTENTS Section 1 1H FY2022 Financial Highlights 4 Section 2 Key Strategies Highlights 18 2
Slide 4: Section 1: 1H FY2022 Financial Highlights
Section 1 1H FY2022 Financial Highlights
Slide 5: 1H FY 2022 Sales Highlights
Key themes 1H FY 2022 Sales Highlights CSI made over HK$3.5 billion of sales and presales for FY 2022 YTD to ensure good cashflow for the coming years For the period Unrecognised ended Contracted Sales committed 30 Sep 2021 Up to 30 Sep 2021 % HK$'000 HK$'000 Group level Hong Kong residential proper
Slide 6: 1H FY 2022 Key Disposals
1 Strong recurrent income anchoring EBITDA 1H FY 2022 Key Disposals CSI has recognized a few key disposals within this fiscal period to ensure profitability Date completed Projects sold and booked for 1H FY 2022 Location Apr 2021 – Sep 2021 15 units at Knightsbridge residential project in Beijing(CS
Slide 7: 1H FY 2022 Interim Results Highlights
Prime Hong Kong properties focused strategy 2 1H FY 2022 Interim Results Highlights 1H FY2022 1H FY2021 % change (HK$m) (A) (B) (A/B-1) Gross revenue from property business 100 247 60% Property sale 0 142 Rental income 100 105 Gross profit 53 83 37% Profit from property JV/associates (230) 292 179%
Slide 8: Interim Results Highlights (contd.) – Balance sheet and liquidity
Visible disposal pipeline to further drive EBITDA – 3 annual target to sell c.HK$5-6 billion+ of prime assets 1H FY 2022 Interim Results Highlights (contd.) Strong balance sheet and ample liquidity to ensure financial stability 1H FY 2022 FY 2021 (HK$m) 30th Sep 2021 31st Mar 2021 Properties & relat
Slide 9: 1H FY 2022 Key Credit Metrics
1H FY 2022 Key Credit Metrics Key credit metrics 1H FY 2022 FY 2021 FY 2020 (HK$m) (HK$m) (HK$m) EBITDA1 / interest expenses2 1.8x 2.3x 6.3x Net debt / total assets (net gearing ratio) 30.6% 36.4% 31.6% Net debt / adjusted total assets3 25.7% 29.2% 25.5% Net debt plus commitment to JVs /adjusted tot
Slide 10: Consistent profitability and growth
Consistent profitability and growth Revenue Gross profit and gross profit margin 3,712 64% 4,000 3,439 2,000 70% 212 52.8% 60% 302 40% 3,000 1,500 50% (HKDm) (HKDm) 31% 33.7% 40% 2,000 1,000 3,137 3,498 30% 1,498 1,000 500 1,065 20% 369 247 100 10% 227 105 100 236 53 0 142 142 0 83 0% FY2019 FY2020
Slide 11: 1H FY 2022 credit highlights
1H FY 2022 credit highlights Debt / EBITDA1 EBITDA1 / net interest expense2 and cash3 / short-term debt 50 42.9x 8 45 40 6.3x 35 31.5x 6 30 24.1x (x) 25 19.0x (x) 18.2x 4 20 15.9x 3.0x 2.9x 15 2.3x 2.2x 9.7x 8.4x 1.8x 10 5.0x 3.8x 2 1.5x 5 0.7x 0.5x 0.4x 0 FY2019 FY2020 FY2021 1HFY2021 1HFY2022 0 FY
Slide 12: 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 13: Successful new senior bond issue in July 2021
Visible disposal pipeline to further drive EBITDA – 3 annual target to sell c.HK$5-6 billion+ of prime assets Successful new senior bond issue in July 2021 reaffirms debt market as a solid financing avenue The Group successfully completed new 4 year senior bond issue as arranged by HSBC, JP Morgan
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 30 Sep 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$1.99 per
Slide 16: Resourceful Pipeline to Ensure Profitability and Liquidity
Resourceful Pipeline to Ensure Profitability and Liquidity FY 2022 4 out of remaining 8 residential units at Dukes Place, No. 47 Perkins Road (60% stake) (two units signed) Capital Centre (formerly AXA Centre) - Ground Floor shop and 51 car parks (sale tender in process) 30% of 11 residential units
Slide 17: Portfolio of Prime Properties in Premier Locations
Portfolio of Prime Properties in Premier Locations (as at 30 Sep 2021) Commercial properties Approximate Market Book 1, 2 1 gross area value value 1 sq.ft. (000s) (HK$m) (HK$m) G/F, 51 carparks of Capital Centre Wan Chai 17 700 150 No. 348 Nathan Road (Redevelopment) (CSI – 51%) at 24/9/2021 Jordan
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 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 market Good cash recycling with realiz
Slide 21: High Quality Residential Portfolio with Massive Value to be Realized
2 High Quality Residential Portfolio with Massive Value to be Realized 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 to be Realised
2 High Quality Commercial Portfolio 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, (previously Everest
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$3.1 billion together with solid commercial bank support via various syndicated loans and credit lines available at Sep 2021 • In August 2020, we have committed a syndicated loan of HK$1.6bn fr
Slide 25: Q&A
Q&A 20132018 & 2014 Best HK Mid-Cap Company