K. Wah International Holdings Limited · HKEX:173
K. Wah International — H1 2017 Earnings Presentation
31 slides from K. Wah International's earnings presentation, Aug 23, 2017
Slide 1: 2017 Interim Results
Hong Kong Stock Code 0173 2017 Interim Results 23 August 2017 Sustaining Success through Excellence and 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 • Prime assets in first-tier cities The Palace III, Shanghai • Replenishment of landbank in disciplined manner • Solid foundation for long-term sustainabi
Slide 4: Results highlights
The Spectra, Hong Kong The Palace, Shanghai Results highlights 4
Slide 5: Financial Highlights
Financial Highlights For the six months ended 30 Jun (HK$ million) Change 2017 2016 Revenue 4,918 5,536 -11% Attributable Revenue* 5,207 7,911 -34% Profit Attributable to Equity Holders 2,162 1,897 14% Underlying Profit 1,293 1,813 -29% Basic EPS (HK cents) 73.06 66.82 9% Interim Dividend per Share
Slide 6: Solid Financial Position
Solid Financial Position As at 30 Jun As at 31 Dec (HK$ million) 2017 2016 Total Assets 62,212 50,473 Cash and Cash Equivalents(1) 8,943 7,248 Total Debts 13,984 11,013 Shareholders’ Funds 30,238 25,360 NAV per Share (HK$) 10.2 8.6 Gearing Ratio(2) 16% 14% EBITDA / Interest(3) 13x 9x Remarks: 1) Inc
Slide 7: Sound Debt Profile with Low Borrowing Cost
Sound Debt Profile with Low Borrowing Cost • A HK$8 billion 5-year revolving credit and term loan facility closed in Jan 2017, partly for refinancing HK$4 billion syndicated loans then outstanding, saving interest • US$200 million guaranteed notes were redeemed in May 2017 • Managed to lower further
Slide 8: Quality Projects Engender Strong Performance
Quality Projects Engender Strong Performance • Attributable revenue* from sales of properties of mainly the below projects amounted to HK$4.9 billion in 1H 2017, and that for The Spectra will be recognized in Q3 2017 The Palace II, SH Yangtze River Delta 上海嘉御庭二期 Grand Summit,SH 上海嘉天匯 Pearl River Del
Slide 9: High Visibility Drives Business Momentum
High Visibility Drives Business Momentum • In 1H 2017, attributable contracted sales* increased 54% year-on-year to HK$10.3 billion despite various austerity measures HK$8.8 billion sales to be YRD 7% HK$1.5 billion booked in booked in 2H 2017 & 1H 2017 the year HK$10.3 billion ending 2018 HK$10.3 b
Slide 10: High Visibility Drives Business Momentum
High Visibility Drives Business Momentum • Major projects with contracted sales to be recognized in 2017/18: The Spectra and K. City in Hong Kong, The Peak in Nanjing The Spectra K. City 朗屏8號 嘉匯 Hong Kong The Peak 嘉譽山 Nanjing 10
Slide 11: Recurring Income from Diversified Portfolio
Recurring Income from Diversified Portfolio • Rental income up 10% to over HK$250 million in 1H 2017 • 1st batch of Stanford Residences Xu Hui, Shanghai with 14,000 sqm GFA added to the portfolio in June 2017 for rental Shanghai K. Wah Centre Crowne Plaza Guangzhou Huadu J SENSES, Hong Kong 上海嘉華中心 廣
Slide 12: Strategy and Outlook
The Palace, Shanghai The Peak, Nanjing Strategy and Outlook 12
Slide 13: Prime Assets in First-tier Cities
Prime Assets in First-tier 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 Shanghai Guangzhou
Slide 14: Replenishment of landbank in disciplined manner
Replenishment of landbank in disciplined manner • Proven track record in landbanking, particularly in Hong Kong, the Yangtze River Delta and Pearl River Delta regions and exploring various alternatives to replenish landbank • Participated in joint venture projects for a residential site in Nanjing (
Slide 15: Sustainable Pipeline in Hong Kong and Mainland China
Sustainable Pipeline in Hong Kong and Mainland China • HK$14.2 billion to be booked from the pre-sales in 1H 2017 or before • Pre-sale for K. City in Hong Kong in Feb 2017 received an overwhelming response with over 820 units sold for more than HK$8 billion (up to 15 August 2017) Hong Kong K. City (
Slide 16: Sustainable Pipeline in Hong Kong and Mainland China
Sustainable Pipeline in Hong Kong and Mainland China • New projects ready to be launched in 2017/2018 Location Project Attri. GFA (sqm) Units (approx.) Hong Kong Tai Po Town Lot No. 226 ^ 61,000 1,000 Shanghai The Palace III (嘉御庭三期) 43,000 106 Azure (嘉瀧匯) 16,000 129 Windermere (嘉濤灣) 71,000 256 Nanji
Slide 17: New projects ready to be launched in 2017/2018
New projects ready to be launched in 2017/2018 Tai Po Town Lot No. 226 (大埔市地段第226號) Hong Kong • Application submitted for pre-sale consent • Located next to the previous developments in Pak Shek Kok The Palace III Azure (嘉瀧匯), (嘉御庭三期), SH SH Shanghai • Located in an affluent, traditional • Within we
Slide 18: New projects ready to be launched in 2017/2018
New projects ready to be launched in 2017/2018 Windermere (嘉濤灣), Royal Creek (御瀾府), Yangtze River Delta SH NJ • Located in Zhujiajiao Town in Qingpu District • Located in an innovative high-tech zone in Pukou • Low-rise residential buildings with ancillary District with two operating subway lines in
Slide 19: Sustainable Pipeline in Hong Kong and Mainland China
Sustainable Pipeline in Hong Kong and Mainland China • Projects to be launched beyond 2018 Hong Kong Shanghai Nanjing Kai Tak Area 1K Site 2 Weifang Village Street project, Lot G89, Jiangning District 2 Grampian Road, Kowloon Pudong District 19
Slide 20: Building up Investment Portfolio
Building up Investment Portfolio • 1st batch of Stanford Residences Xu Hui with GFA 14,000 sqm started the operation in June 2017 • J Town (Silver Cove commercial portion) with GFA 9,600 sqm will be soft opened in Q3 2017; Stanford Residences Jin Qiao with GFA 13,000 sqm and 2nd batch of Stanford Re
Slide 21: Building up Investment Portfolio
Building up Investment Portfolio • Construction of an office building at Suhe Creek, Jingan District, Shanghai, with GFA 20,000 sqm, commenced in 1H 2017 Office project at Suhe Creek, Jingan District • Investment portion in various development projects will be added to our portfolio upon completion
Slide 22: 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 23: Appendix: Projects Summary
K. City, Hong Kong Appendix: Projects Summary 23
Slide 24: Projects in Hong Kong
Projects in 9 13 5-8 Hong Kong 12 10,11 Marinella Tai Po Town Lot No. 226 1 8 深灣9號 大埔市地段第226號 Chantilly The Spectra 2 9 肇輝臺6號 朗屏8號 3 J SENSES K. City 10 30 Po Shan Road 嘉匯 4 3 2 4 寶珊道30號 Kai Tak Area 1K Site 2 11 Providence Bay 啟德發展區第1K區2號 5 天賦海灣 2 Grampian Road 12 Providence Peak 嘉林邊道2號 6 1 溋玥．天賦海灣
Slide 25: Projects in Hong Kong
Projects in Hong Kong Year of launch GFA# % Sold Group’s Target KWIH’s Property Portfolio 2019 or (sqm) as of 2H 2017* 2018 Interest completion beyond (approx.) Jun 2017 Marinella 深灣9號 Launched 69,000 > 95% 35% Completed Chantilly 肇輝臺6號 Launched 8,000 > 35%^ 100% Completed Providence Bay 天賦海灣 Launch
Slide 26: Projects in Yangtze River Delta
Projects in Yangtze River Delta 南京市 Nanjing City 10 8 7 3,4 6 1,2 9 5 上海市 Shanghai City 1 The Palace, Xuhui District 5 Windermere, Qingpu District 8 The Peak, Qixia District, Nanjing 徐匯區嘉御庭 青浦區嘉濤灣 南京棲霞區嘉譽山 2 Shanghai K. Wah Centre, Xuhui District 上海嘉華中心 6 Weifang Village Street project, Pudong 9 Lot
Slide 27: Projects in Yangtze River Delta region
Projects in Yangtze River Delta region Year of launch GFA % Sold Group’s Target KWIH’s Property Portfolio 2019 or (sqm) as of 2H 2017* 2018 Interest completion beyond (approximately) Jun 2017 Grand Summit, 100,000 Jingan District, SH Sale Launched (Sale: 68,000) > 95% 100% Completed 上海靜安區嘉天匯 Service
Slide 28: Projects in Pearl River Delta
1 Le Palais, Huadu Projects in Pearl River Delta 花都嘉爵園 2 Huadu Jiahua Plaza 花都嘉華廣場 3 J Metropolis, Huadu Mega Integrated Project 嘉匯城 (花都超大型國際社區) 4 Silver Cove, Shilong Town, Dongguan 東莞石龍鎮星際灣 28
Slide 29: Projects in Pearl River Delta region
Projects in Pearl River Delta region Year of launch GFA % Sold Group’s Target KWIH’s Property Portfolio 2019 or (sqm) as of Interest completion 2H 2017* 2018 (approximately) Jun 2017 beyond 793,000 J Metropolis, Phase I Launched (Ph I: 77,000) > 95% Ph I, II & III: Huadu Mega Integrated Project, GZ
Slide 30: About K. Wah Group
About K. Wah Group Entertainment & Construction Properties Hospitality Leisure Materials Galaxy Entertainment Stanford Hotels K. Wah Construction Group Limited International Materials Limited Market cap: ~HK$14 bn(1) (Stock code: 00173) Market cap: ~HK$203 bn(1) (Non-listed) (A subsidiary of Galaxy
Slide 31: Thank You!
The Spectra, Hong Kong Thank You! 31
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