Thursday, August 20, 2015
China Merchants Securities (HK) Co., Ltd. Company Report Hong Kong Equity Research
Country Garden (2007 HK) John So Hayden Zhang +852 3189 6357 +852 3189 6354 Lack positive earnings drivers in 2H15 [email protected] [email protected] ■ Flat 1H15 profit growth and margin squeeze were no surprise to the market, but the continuous increase in Property Under WHAT’S NEW Development (PUD), and limited improvement in net gearing are TP revised disappointing, in our view
■ For full-year, it may miss the 5%contracted sales target growth NEUTRAL and we expect only 3% YoY FY15E earnings growth. Previous NEUTRAL
■ Maintain NEUTRAL and downgraded TP to HK$3.2 (from HK$3.4) Price HK$2.91 12-month Target Price HK$3.2 (+10%) Flat 1H15 earnings; limited improvement in gearing (Potential upside) In 1H15, CG reported RMB47.3bn revenue, +23.5% YoY. Gross margin was down to 23.2% from 1H14 28.6% on price cut to clear inventories. Previous HKD3.4 The core net profit amounted to RMB4.66bn, or -1% YoY. The net gearing improved slightly to 60.7% from 62% at last year-end, mainly Price Performance driven by RMB5bn shares issuance to Ping An Insurance during 1H15. CG 2007 MSCI China/real Estate 40% Concerns on 2H15E contracted sales progress 30% Despite 5-10% ASP cut to clear old inventories in the past one year, CG’s 20% PUD and inventory balance kept increasing to RMB146.3bn (+13% HoH), 10% and 1H15 contracted sales declined 7% YoY. In 2H15E, CG claimed that 0% -10% it had RMB170-180bn saleable resources; however, we are concerned -20% that it is difficult to achieve its RMB77bn contracted sales target in 2H15E -30% considering its weak 35% sell-through rate in 1H15. We also think that Aug/14 Sep/14 Nov/14 Dec/14 Feb/15 Mar/15 Apr/15 Jun/15 Jul/15 Source: Capital IQ CG may have little room to raise ASP (thus improving profit margin) in % 1m 6m 12m most Tier-3 cities where there are still oversupplies. Our FY15E/16E 2007 HK (9.9) (5.8) (22.3) earnings are 7.9%/1.2% below consensus. MSCI China/real (11.5) (7.3) (8.8) estate Maintain Neutral rating, awaiting for positive catalyst
Stock looks unappealing on the lack of contracted sales progress and Industry: Property earnings growth. Meanwhile, the potential hotel asset disposal and the Hang Seng Index 23168 domestic loan issuance shows little progress and may not materialize in HSCEI 10642 the next few months. Stock is on 46.5% discount to NAV. Our new TP Key Data HK$3.2 is based on 40% (Previous: 35%) discount to our end-FY15 NAV 52-week range (HK$) 2.38-4.55 of HKD5.4/share, equivalent to 0.5SD below 6-year historical mean. Market cap (HK$ mn) 65,279 Avg. daily volume (mn) 43.34 BVPS (HK$) at FY14 y.e. 3.4 Shareholdings Structure Financials Yang’s Family 53.6% RMB mn 2013 2014 2015E 2016E 2017E Ping An Insurance 9.9% Yang Erzhu 7.0% Revenue 62,724 84,549 106,767 110,789 112,624 Free float 29.5% Revenue growth (%) 50% 35% 26% 4% 2% Core net profit 8,001 9,081 9,366 11,462 12,498 Related Research Core profit growth (%) 18% 13% 3% 22% 9% Country Garden (2007 HK) - Awaiting positive changes, March 12, 2015 Core EPS (HK$) 0.54 0.59 0.53 0.63 0.69 Country Garden (2007 HK) - Awaiting for re-rating catalysts, June Net gearing (%) 64% 62% 66% 58% 49% 25, 2015 P/E (core EPS) 5.4x 4.9x 5.5x 4.6x 4.2x
P/B 1.0x 0.8x 0.8x 0.7x 0.6x Dividend yield 7.3% 6.3% 5.7% 6.5% 7.1% Sources: Company data, CMS (HK) estimates
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Focus Charts Figure 1: Discount to NAV Band Figure 2: Contracted sales
RMB mn YoY chg 160,000 140% 5.0 +2SD = 15% discount 140,000 120%
120,000 +1SD = 26% discount 100% 4.0 100,000 Mean =36% discount 80% 80,000
3.0 -1SD = 47% discount 60% 60,000
-2SD = 57% discount 40% SharePrice (HKD) 40,000 2.0 20,000 20%
- 0% FY12 FY13 FY14 FY15E FY16E 1.0 Total YoY change Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15
Sources: Bloomberg, CMS (HK) Sources: Company data, CMS (HK)
Figure 3: Revenue and core net profit growth Figure 4: Net gearing
60% Net gearing (%) 70% 50% 65% 40% 60% 30% 55% 20% 50% 10%
45% 0%
2013 2014 2015E 2016E 2017E 40% Revenue Core net profit 2012 2013 2014 2015E 2016E
Sources: Company data, CMS (HK) Sources: Company data, CMS (HK)
Figure 5: Interest coverage Figure 6: Landbank (GFA) at 2014 year-end
(x) Malaysia, Tier-1 4.0 2% city, 2% Tier-2 3.5 city, 5%
3.0
2.5
2.0
1.5 Tier-3 1.0 2012 2013 2014 2015E 2016E city, 90%
Source: CMS (HK) Sources: Company data, CMS (HK) Note: Operating profit / total interest (including the capitalized portion)
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Figure 7: Half-year P&L details 1H FY (RMB mn) 1H14 1H15 YoY chg FY14 FY15E YoY chg Total Revenue 38,323 47,328 23.5% 84,549 106,767 26.3% Cost of goods sold (27,372) (36,353) 32.8% (62,494) (82,643) 32.2% Gross Profit 10,951 10,975 0.2% 22,055 24,123 9.4% Gross margin (%) 28.6% 23.2% -5.4ppts 26.1% 22.6% -3.5ppts
General & admin expense (1,523) (1,307) -14.2% (3,160) (3,245) 2.7% Selling expense (1,788) (1,641) -8.2% (4,356) (4,549) 4.4% Finance cost (35) (167) 377.1% (396) (435) 9.9% Others 1,124 240 -78.6% 2,020 380 -81.2%
Net profit before tax and MI 8,729 8,100 -7.2% 16,163 16,274 0.7% Tax (3,165) (2,895) -8.5% (5,757) (6,393) 11.0% Minority Interests (141) (276) 95.7% (176) (515) 192.8% Reported net profit 5,423 4,929 -9.1% 10,230 9,366 -8.4%
Core net profit 4,710 4,658 -1.1% 9,081 9,366 3.1% Core net profit margin (%) 12.3% 9.8% -2.45ppts 10.7% 8.8% -1.97ppts
GFA delivered (k sqm) 5,351 7,250 35.5% 12,180 16,470 35.2% Booked ASP (RMB psm) 6,916 6,276 -9.2% 6,724 6,262 -6.9%
Net debts (RMB mn) 36,175 40,280 11.3% 36,945 46,716 26.4% Net gearing (%) 70.0% 60.7% -9.2ppts 62.2% 65.8% 3.5ppts Presales deposits received (RMB mn) 83,430 96,737 15.9% 91,792 103,650 12.9%
Dividend (HKD/share) - 0.081 n.a. 0.184 0.237 28.3%
Sources: Company, CMS (HK)
Figure 8: Key Financials (RMB mn) Revenue and GFA sales details FY13 FY14 FY15E FY16E FY17E Total GFA delivered (k sqm) (1) 9,240 12,180 16,470 15,598 15,542 Average selling price booked (RMB psm) (2) 6,498 6,724 6,262 6,847 6,964 Property sales Revenue (1) x (2) 60,043 81,898 103,142 106,802 108,238 Others 2,681 2,651 3,625 3,988 4,386 Total Revenue 62,724 84,549 106,767 110,789 112,624 Gross profit 19,011 22,055 24,123 27,015 29,745 Reported net profit 8,514 10,230 9,366 11,462 12,498 Core net profit 8,001 9,081 9,366 11,462 12,498
Total contracted sales 106,000 128,800 135,240 139,297 143,476
Property development cost (RMB psm) (4,486) (4,935) (4,706) (5,090) (5,022) Core profit per GFA delivered (RMB psm) 866 746 569 735 804
YoY changes (In %) GFA delivered 50.0% 31.8% 35.2% -5.3% -0.4% Average selling price 0.0% 3.5% -6.9% 9.3% 1.7% Revenue 49.7% 34.8% 26.3% 3.8% 1.7% Gross profit 23.9% 16.0% 9.4% 12.0% 10.1% Reported net profit 24.2% 20.2% -8.4% 22.4% 9.0% Core net profit 18.0% 13.5% 3.1% 22.4% 9.0% Contracted sales 122.7% 21.5% 5.0% 3.0% 3.0%
Margin ratios (In %) Gross margin 30.3% 26.1% 22.6% 24.4% 26.4% Reported net profit margin 13.6% 12.1% 8.8% 10.3% 11.1% Core net profit margin 12.8% 10.7% 8.8% 10.3% 11.1%
Sources: Company, CMS (HK)
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Valuation Figure 9: Peer comparison (based on closing prices on 12:00pm, 20 Aug 2015) Mkt 3-mth Discount FY15 FY16 FY14 FY15 FY14 FY15 Net Net cap avg t/o NAV to NAV P/E P/E yield yield P/B P/B gearing gearing Company Ticker Price (USDm) (USDm) (HKD) (%) (x) (x) (%) (%) (x) (x) FY14(%) FY15(%) Large peer average 33.7 7.5 6.6 4.7 4.2 1.2 1.0 70.7 72.4 China Overseas 688 HK 23.90 30,405 75.9 34.0 29.7 6.8 6.2 2.3 2.7 1.5 1.2 27.1 22.4 CR Land 1109 HK 19.64 17,562 49.5 33.0 40.5 9.4 7.4 2.5 2.1 1.4 1.0 42.7 38.0 Country Garden 2007 HK 2.89 8,422 12.8 5.4 46.5 5.5 4.6 6.4 5.7 0.8 0.8 62.2 65.8 Evergrande 3333 HK 4.80 8,986 91.9 5.3 9.4 8.8 8.9 11.2 2.8 1.1 1.1 251.0 288.2 Longfor 960 HK 10.26 7,713 6.0 14.6 29.7 5.3 5.8 3.5 3.6 0.9 0.9 57.1 59.4 Shimao Property 813 HK 12.34 5,529 14.7 31.6 60.9 4.4 3.8 7.3 7.3 0.7 0.6 58.6 57.4 Wanda Comm-H 3699 HK 53.10 31,016 63.1 n.a. n.a. 10.4 8.3 1.2 2.7 1.3 1.2 60.4 33.9 China Vanke-H 2202 HK 17.84 24,959 27.6 22.0 18.9 9.1 7.7 3.4 3.9 1.8 1.6 6.3 14.1
Mid-and-small peer average 59.3 8.6 6.4 4.3 4.8 0.6 0.5 72.6 70.5 Agile Property 3383 HK 4.15 2,097 7.3 14.4 71.2 3.2 3.0 9.5 7.9 0.4 0.4 96.6 80.2 COGO 81 HK 1.35 854 3.9 3.1 56.5 11.8 4.8 0.7 0.8 1.2 1.0 49.4 59.3 CIFI Holdings 884 HK 2.83 833 1.8 8.2 65.5 5.1 3.1 1.8 2.0 0.5 0.5 77.0 64.7 Franshion Ppt 817 HK 1.53 1,336 6.5 4.0 61.8 3.8 3.2 7.2 6.3 0.7 0.6 66.6 75.7 Greentown China 3900 HK 2.21 3,043 6.0 4.5 50.9 6.2 5.5 5.2 5.0 0.6 0.5 60.9 52.3 KWG Property 1813 HK 7.15 1,995 7.3 16.2 55.9 4.1 3.9 0.0 4.8 0.5 0.5 93.4 76.6 Poly Property 119 HK 4.95 1,914 7.5 16.3 69.6 3.9 3.3 8.3 9.0 0.6 0.5 66.8 62.8 Shenzhen Investment 604 HK 2.60 1,228 8.8 8.1 67.9 9.5 7.7 2.9 2.7 0.3 0.3 97.0 102.2 Sino Ocean 3377 HK 2.92 2,781 21.5 6.0 51.3 6.3 5.7 5.5 6.2 0.6 0.6 77.8 N/A SOHO China 410 HK 4.41 4,284 6.3 8.0 44.9 6.9 6.1 5.4 5.7 0.6 0.6 76.0 58.1 Sunac 1918 HK 4.46 2,992 4.4 8.6 48.1 21.7 20.3 7.0 6.6 0.5 0.5 20.3 27.3 Gemdale 535 HK 6.00 2,631 14.1 12.4 51.6 2.7 3.3 4.0 7.4 1.0 0.7 44.5 67.4 BJ North Star 588 HK 0.39 762 1.8 n.a. n.a. 6.2 4.6 N/A 4.3 0.8 0.7 1.4 N/A Yuexiu Property 123 HK 2.45 2,917 2.7 n.a. n.a. 7.8 6.9 3.1 4.0 0.4 0.5 74.6 67.0
Average 51.2 8.2 6.4 4.5 4.6 0.8 0.7 72.0 71.1 Sources: CMS (HK), Bloomberg
Figure 10: Discount to NAV Band (Year 2009 onwards)
5.0 +2SD = 15% discount
+1SD = 26% discount 4.0 Mean =36% discount
3.0 -1SD = 47% discount
-2SD = 57% discount SharePrice (HKD)
2.0
1.0 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15
Sources: Company, CMS (HK)
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Figure 11: New land purchases in 1H15
Aggregate Aggregate Attributable Attributable Land Cost GFA GFA Land Cost Land Cost Project 项目名称 City (RMB mn) Stake (k sqm) (k sqm) (RMB mn) (RMB psm) Country Garden -Jade Bay Phase II 碧桂园·翡翠湾二期 Wuhu (Wuwei) 160 85% 124 105 136 1,523 Renhuai Country GardenPhase II 仁怀碧桂园二期 Zunyi(Renhuai) 88 100% 57 57 88 1,544 Tong’an Country Garden* 通安碧桂园* Suzhou(Hi-tech District) 89 90% 45 40 80 2,198 Baoying Country Garden Phase II 宝应碧桂园二期 Yangzhou(Baoying) 381 100% 202 202 381 1,890 Tianhui Country Garden* 天汇碧桂园* Dongguan(Dalang) 250 100% 112 112 250 2,232 Country Garden -Phoenix City (newland replenishment) 碧桂园·凤凰城后续地块 Zhenjaing(Jurong) 79 100% 211 211 79 375 Country Garden -Europe City (newland replenishment) 碧桂园·欧洲城后续地块 Chuzhou(Nanqiao) 75 100% 99 99 75 758 Jintan Country Garden* 金坛碧桂园* Changzhou(Jintan) 262 100% 217 217 262 1,206 Country Garden -Coral Palace Phase II (2) 碧桂园·珊瑚宫殿二期二批 Lingshui(Yingzhou) 113 55% 97 53 62 2,122 Country Garden -Coral Palace Phase II (3) 碧桂园·珊瑚宫殿二期三批 Lingshui(Yingzhou) 151 55% 106 58 83 2,602 Fu’an Country Garden* 福安碧桂园* Ningde(Fu’an) 33 30% 24 7 10 4,636 Jian’ou Country Garden* 建瓯碧桂园* Nanping(Jian’ou) 62 43% 103 44 27 1,403 Lufeng Country Garden* 陆丰碧桂园* Shanwei(Lufeng) 134 100% 496 496 134 270 Jiading Country Garden* 嘉定碧桂园* Shanghai(Jiading) 608 100% 75 75 608 8,114 Country Garden -Coral Palace Phase III (1) 碧桂园·珊瑚宫殿三期一批 Lingshui(Yingzhou) 244 55% 224 123 134 1,978 Leizhou Country Garden* 雷州碧桂园* Zhanjiang(Leizhou) 118 100% 243 243 118 486 Wuhua Country Garden Phase II 五华碧桂园二期 Meizhou(Wuhua) 34 100% 60 60 34 564 Hancheng Country Garden* 韩城碧桂园* Weinan(Hancheng) 73 100% 243 243 73 301 Zhijin Country Garden* 织金碧桂园* Bijie(Zhijin) 22 100% 39 39 22 569 Country Garden -Coral Palace Phase III (2) 碧桂园·珊瑚宫殿三期二批 Lingshui(Yingzhou) 233 55% 224 123 128 1,890 Quzhou Country Garden Phase II 衢州碧桂园二期 Quzhou(Donggang) 66 100% 97 97 66 678 Country Garden–Ten Miles Golden Beach Phase II 碧桂园·十里金滩二期 Yantai(Haiyang) 38 90% 14 13 34 2,986 Xuchang Country Garden* 许昌碧桂园* Xuchang(Xuchang) 151 43% 288 124 65 1,221 Changshu Country Garden* 常熟碧桂园* Suzhou (Changshu) 385 100% 91 91 385 4,221 Xingtai Country Garden* 邢台碧桂园* Xingtai(Xingtai) 323 100% 690 690 323 468 Luanzhou Ancient City Country Garden* 滦州古城碧桂园* Tangshan (Luanzhou) 63 99% 130 128 62 491 Phoenix Courtyard* 凤凰名苑* Guangzhou (Zengcheng) 790 85% 244 207 672 3,815 Country Garden-Jingshanling Great Wall Valley* 碧桂园·金山岭长城河谷* Chengde(Luanping) 93 50% 120 60 47 1,550 Beiliu Country Garden 北流碧桂园 Yulin(Beiliu) 129 100% 274 274 129 471 Lianyungang Country Garden* 连云港碧桂园* Liangyungang(Haizhou) 151 100% 139 139 151 1,083 Houjie Country Garden* 厚街碧桂园* Dongguan(Houjie) 104 100% 39 39 104 2,654 Country Garden-SanshuiHuafu* 碧桂园·三水华府* Foshan(Sanshui) 213 94% 135 127 200 1,674 Country Garden-GuangtingLake 1* 碧桂园·官厅湖1号* Zhangjiakou(Huailai) 65 51% 46 23 33 2,771 Taicang Country Garden* 太仓碧桂园* Suzhou(Taicang) 461 100% 173 173 461 2,664 Kaili Country Garden* 凯里碧桂园* Kaili(Riverside new city) 155 92% 182 167 143 926 Huaihua Country Garden* 怀化碧桂园* Huaihua(HeCity) 167 43% 463 199 72 838 Country Garden-Yiquan Villa* 碧桂园·逸泉山庄* Huizhou(Huiyang) 70 46% 90 42 32 1,685 Pingdingshan Country Garden* 平顶山碧桂园* Pingdingshan(Zhanhe) 162 43% 215 92 70 1,755 Country Garden-Phoenix Bay* 碧桂园·凤凰湾* Xinxiang(Pingyuan) 259 100% 285 285 259 907 Holiday Islands-Twinkle Star Bay* 假日半岛—星月湾* Qingyuan(Qingcheng) 54 100% 60 60 54 900 Gaozhou Country Garden-PhoenixCity Phase Ⅲ 高州碧桂园凤凰城三期 Maoming(Gaozhou) 134 90% 248 223 121 600 Country Garden-Jade Bay 碧桂园·翡翠湾 Jiangmen(Kaiping) 53 90% 79 71 48 748 Country Garden-City Garden* 碧桂园·城市花园* Chengdu(Jinniu) 385 51% 180 92 196 4,189 Country Garden-Meilang Bay* 碧桂园美浪湾* Chengmai(Dafeng) 140 70% 127 89 98 1,570 Country Garden-Xuefu1* 碧桂园·学府壹号* Shenyang(Huanggu) 201 60% 144 86 121 2,324
Total 7,554 6,202 6,729 Sources: Company data, CMS (HK)
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Financial Summary Balance Sheet Profit & Loss Statement RMB mn 2013 2014 2015E 2016E 2017E RMB mn 2013 2014 2015E 2016E 2017E Current Assets 146,214 192,616 195,286 214,556 241,875 Total revenue 62,724 84,549 106,767 110,789 112,624 Cash 18,910 18,761 18,728 22,960 29,711 Cost of goods sold (43,713) (62,494) (82,643) (83,774) (82,879) Restricted cash 7,770 8,453 10,054 10,054 10,054 Gross profit 19,011 22,055 24,123 27,015 29,745 Current receivables 26,378 25,370 28,822 28,822 28,822 Admin exp. (2,033) (3,160) (3,245) (3,455) (3,558) Properties held for sale 18,920 23,203 32,030 33,237 33,787 Selling exp (4,304) (4,356) (4,549) (4,736) (4,878) Properties under development 67,474 105,994 93,329 107,160 127,179 Finance cost 0 (396) (435) (461) (482) Other current assets 6,762 10,835 12,323 12,323 12,323 JCE & Associates (26) (40) (17) 0 0 Non-current Assets 60,026 75,416 109,486 122,848 141,191 Others 825 2,060 397 280 280 Fixed Assets 17,848 27,743 29,792 31,838 33,802 Pre-tax profit 13,473 16,163 16,274 18,643 21,106 Properties under development 40,080 44,639 76,360 87,677 104,055 Income tax (4,625) (5,757) (6,393) (6,619) (8,162) Other non-current assets 2,098 3,034 3,334 3,334 3,334 MI (334) (176) (515) (562) (446) Total Assets 206,240 268,032 304,772 337,404 383,067 Reported net profit 8,514 10,230 9,366 11,462 12,498 Current Liabilities 114,904 156,623 174,751 194,376 226,533 Bank and other loans 12,434 14,930 19,369 19,369 19,369 Core profit 8,001 9,081 9,366 11,462 12,498
Presales receipts in advance 63,418 91,792 103,650 123,349 154,261 Accounts Payable & other payables 30,915 40,925 42,899 42,899 42,899 Core EPS (RMB) 0.44 0.47 0.43 0.51 0.55 Other current liabilities 8,137 8,976 8,833 8,759 10,004 DPS (RMB) 0.17 0.15 0.13 0.15 0.17 Non-current Liabilities 45,324 52,057 59,010 63,010 67,010 Note: We deduct property revaluations and other exceptional items to arrive at core net profit Bank and other loans 43,815 49,229 56,129 60,129 64,129 Others 1,509 2,828 2,881 2,881 2,881 Total Liabilities 160,228 208,680 233,761 257,386 293,543 Ratios Shareholders’ Equity 43,954 56,686 67,684 76,129 85,188 % 2013 2014 2015E 2016E 2017E Minority interests 2,058 2,666 3,327 3,889 4,335 Growth (%) Total equity & Liabilities 206,240 268,032 304,772 337,404 383,067 Revenue 50% 35% 26% 4% 2% Note: Total cash includes both cash and restricted cash Gross profit 24% 16% 9% 12% 10% Core net profit 18% 13% 3% 22% 9% Cashflow Statement PUD and inventory 52% 37% 16% 13% 16% RMB mn 2013 2014 2015E 2016E 2017E Contracted sales 123% 22% 5% 3% 3% Operating cashflow 18,990 15,486 3,022 25,969 33,909 Profit before tax 13,473 16,163 16,274 18,643 21,106 Profitability (%) Working capital chg 14,320 10,805 (1,748) 19,475 25,375 Gross margin 30% 26% 23% 24% 26% Tax paid (4,817) (5,998) (6,578) (6,693) (6,917) Core net profit margin 13% 11% 9% 10% 11% Interest paid (3,814) (5,059) (6,029) (6,593) (6,893) Effective tax rate 34% 36% 39% 36% 39% Other operating cashflow (172) (425) 1,103 1,136 1,238 ROE 20% 18% 15% 16% 15% Investing cashflow (29,793) (24,687) (16,011) (22,720) (27,720) ROA 5% 4% 3% 4% 3% Fixed assets additions (5,347) (5,117) (2,005) (3,000) (3,000) Dividend Pay Out 36% 28% 31% 30% 30% Land purchases (24,800) (20,000) (14,203) (20,000) (25,000) JCE & Associate items 0 0 (17) 0 0 Liquidity Other Investing cashflow 354 430 214 280 280 Free cash flow (RMB mn) (11,157) (9,631) (13,186) 2,969 5,909 Financing cashflow 17,985 9,095 12,956 983 561 Total debt/equity 122% 108% 106% 99% 93% Dividend paid (1,710) (1,507) (3,333) (3,017) (3,439) Net debt/equity 64% 62% 66% 58% 49% Redemption of CB (957) 0 0 0 0 Interest coverage (x) 3.1 2.9 2.6 2.9 3.1
Shares issuance 0 2,501 4,950 0 0 Increase/Decrease in Loans 20,419 4,580 11,339 4,000 4,000 Financing to/from fellow companies 0 0 0 0 0 Other financing cashflow 233 3,521 0 0 0
Cashflows for the year 7,182 (106) (33) 4,232 6,751 Cash at the beginning 11,809 18,910 18,761 18,728 22,960 Exchange difference (81) (43) 0 0 0 Cash at the end 18,910 18,761 18,728 22,960 29,711
Note: we reclassify land capex from operating cashflows into investing cashflows, which is different from the company’s financial statements. Source: Company data, CMS (HK) estimates
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Investment Ratings Rating Definition BUY Expected to outperform the market index by >10% over the next 12 months NEUTRAL Expected to outperform or underperform the market index by 10% or less over the next 12 months SELL Expected to underperform the market index by >10% over the next 12 months
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