DOCSLIB.ORG

China Real Estate M&A 2017 Full Year Review

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
China Real Estate M&A 2017 Full Year Review China real estate M&A 2017 full year review Domestic M&A activity Outbound M&A activity Data illustration Domestic M&A activity 3 目录Content Outbound M&A activity 14 Data illustration 21 China real estate M&A 28 March 2018 PwC 2 Domestic M&A activity Outbound M&A activity Data illustration Domestic M&A activity China real estate M&A 28 March 2018 PwC 3 Domestic M&A activity Outbound M&A activity Data illustration In 2017, the number of real estate M&A deals in China exceeded 480, and the transaction amount increased by 31% on-year basis , exceeding US$80 billion. The average transaction size increased significantly. 2015-2017 Domestic RE M&A deals number 2015-2017 Domestic RE M&A deals value 600 60% Unit: $bn 90 120% 81 102% 482 45% 453 62 400 60 80% 334 36% 30% 44 42% 200 30 40% 31% 6% 0 0% 0 0% 2015 2016 2017 2015 2016 2017 Deal Deal 交易数量 yoy 交易金额 yoy number value Average value per deal Note：Only mainland China is included and M&A activities 130 137 168 excludes internal reorganization deals （$mn） Source：CV，Mergermarket， Thomson China real estate M&A 28 March 2018 PwC 4 1 Domestic M&A activity Outbound M&A activity Data illustration In 2017, the value of real estate M&A deals greater than US$1 billion increased by 21%, and value of US$100 million to US$1 billion decreased by 17%. 2017 RE deals value by deal size Big domestic M&A deals in 2017 Announce Deal Value T arget Buyer Percentage Date ( US$m n) 10% 29/06/2017 Guangdong Intl Trust RE Guangzhou Wanxi RE Co 8,105 100% 14% Development Ltd (subsidiary of Vanke) 22/08/2017 Wanda commercial Sunac Group 6,500 91% 31/05/2017 Evergrande Group Holdings Strategic investors 6,300 15% Limited 12/01/2017 China Vanke Co Ltd Shenzhen Metro Group 5,359 15% Co Ltd 18/11/2017 Chengdu Global Century Yunnan Metro Re Dvlp 4,292 51% 44% Co Ltd 12/06/2017 China Vanke Co.,Ltd Shenzhen Metro Group 4,217 14% Co.,Ltd 19/07 /2017 7 7 hotels under Wanda R&F PROPERTIES 2,940 100% 61% business <1< US$100mn亿美金 06/06/2017 Jiayuan International Holdings Mingyuan group 1,504 16% 1US$100mn-10亿美金-1bn investment co. LTD 12/05/2017 Tianjin Shining Star Group Sunac China Holding 1,486 80% >10>US$1bn亿美金 limited 22/11/2017 Shenzhen Kangqiao Jiacheng Shenzhen Chuangjing 1,296 7 0% Invest Co 19/07 /2017 Huainan mining cindare real estate 1,131 100% industry(group)Co.,Ltd Co.,LTD. 27 /02/2017 Beijing Woaiwojia RE Brkg Co Kunming Sinobright 1,031 94% (Grp) Co 46% 14/06/2017 Hui Cheng Real estate Y ango 949 100% 28/12/2017 Shanghai Xingwaitan Dvlp Shanghai Intl Port (Grp) 915 50% Co Lt 25% 14/07 /2017 BADENGCHENG investment China Evergande Group 809 100% 28/11/2017 3 commercial properties of SUPER ALLIANCE 7 53 100% China Merchants Shekou 12/10/2017 Nanjing Hengxiang Ppty Co Ltd Fujian Kairuite Trading 609 65% 2016 2017 Co Ltd Source：CV，Mergermarket， Thomson China real estate M&A 28 March 2018 PwC 5 1 Domestic M&A activity Outbound M&A activity Data illustration In 2017, the expansion of RE companies and business transformation together contributes to the dynamics of M&A activities Acquiring the target company's Real estate companies are facing property and land through the the transition from “buy, build and acquisition of the target company, sell” model to “sell or hold” model opening the channel for rapid access • Agile acquires Greenland Property to the target geographical market Management, due to the rapid • Sunac acquires property projects from development of property Lemmon International and Legend management and various value- Holdings, rapidly increasing land added community services reserves • Sunac China acquires partial equity in • Cinda acquires Huainan Mining Lianjia and enters long-term rental Industry property, entering Anhui and market, which meets the current Zhejiang Market policy orientation Real estate companies continue to Companies seek new growth points integrate with other industries such outside the real estate business. They as financial, senior living, industrial change from the current heavy asset real estate, education, tourism, business structure to a light-asset healthcare and logistics model that focuses on tourism, • Suning invests in Evergrande so that finance, the Internet, and other major Evergrande increases its operational industries advantage in internet retail business • Kunming Department Store acquired • Greenland moves into multiple 5I5J, exploring Internet business industries such as infrastructure, • China Merchants Shekou establishes Explore diversify in the real estate business sector large-scale consumption, finance, real estate fund as its pilot project in to develop related businesses other than traditional healthcare, science and innovation real estate finance and light asset residential and commercial real estate • Sunshine City acquires shares of business • Vanke acquires ProLogis to Create the world's largest Shunde Science Park to explore logistics real estate development platform industrial property 资料来源：CV，Mergermarket， Thomson China real estate M&A 28 March 2018 PwC 6 1 Domestic M&A activity Outbound M&A activity Data illustration 1 In 2017, more companies achieved RMB 50 billion revenue and M&A is a quick way to realize scale growth Number of China Top 100 RE companies by revenue 77 62 • The scale advantage of real estate lies in： − Better brand influence； 21 11 9 11 − More comprehensive operation ability； 3 3 3 - − Stronger financing ability and scale； < RMB<500 50亿元 bn RMB500 50-1000-100亿元 bn RMB1000 100-3000-300亿元 bn RMB3000- 3005000-500亿元 bn >RMB>5000 亿元500 bn − Stronger resource integration capabilities 2016 2017 • Top-ranking large-scale housing enterprises continued 2016-2017 revenue growth rate of top 200 RE companies to maintain rapid growth in 2017, and industry concentration increased further 68% • M&A is an important way for companies to achieve 56% 53% 55% revenue growth in a relatively short period of time, and the scale of target companies has also increased. 34% • Small scale companies (less than 50 billion revenue) grow much slower than the industry average 8% >RMB500bn RMB300-500bnRMB100-300bn RMB50-100bn <RMB50bn Average Source：CRIC，CREA China real estate M&A 28 March 2018 PwC 7 1 Domestic M&A activity Outbound M&A activity Data illustration 2 Compared to traditional bidding and auction, enterprises can acquire land reserves through M&A at a relatively low cost, and can acquire large-area reserves in a relatively short period of time, consolidating the advantages of the existing real estate business and stretching out into core cities Land supplies in 300 cities in China Recruitment is not allowed in land bid invitation, and property developers need use 100% of their own funds for auctions; acquisition companies are not subject to this restriction. The threshold for land acquisition has risen, and the policy of restricting prices and restricting purchases throughout the country has reduced the willingness of companies to obtain land through auctions. Despite more Residence Commercial Major real estate developers are actively carrying out land reserves, and acquiring land companies can acquire multiple parcels and properties at one time, which gives them an advantage in land stocks 2016 122 mn m2 35 mn m2 supply, M&A activities Acquisition of land through acquisition of a company can often result in a lower cost (the target company's own risk and tax factors reduce costs) are still Up 4.9% Up 8.4% dynamic The land held by the acquired company often has a relatively advantageous location compared with the land under auction nowadays 2017 128 mn m2 38 mn m2 Acquisitioncan help buyers directly enter the local market Case of increasing land reserve through M&A in 2017 Deal time Buyer Seller Target property Property and land acquired 2017 Yango Tibet Dingzun, 100% Huicheng’s equity 650,000m2 golf land, 114,200 m2 Nandu Guoji residence and more than 270,000 m2 planning area 2017 Fujian Kairuite Nanjing Hengxiang 65% Hengxiang’s equity 65,400m2 land reserve 2017 Tahoe Lifeng 100%Lifeng’s equity 707,200m2 land reserve Source：China Index Academy, public information China real estate M&A 28 March 2018 PwC 8 1 Domestic M&A activity Outbound M&A activity Data illustration 3 In recent years, real estate companies have achieved business transformation, model switching, industrial expansion, and new business transformation through mergers and acquisitions(1/2) Why transformation Land cost remain high, real estate stocks have to be digested, the incremental market that can be developed is limited, overall profits of real estate companies have fallen, financing costs have risen, and profit pressure has increased. Real estate companies are faced with the transformation from "taking homes to sell Different directions homes" to "sell and hold operations simultaneously ." They are also seeking new growth of transformation points outside of the real estate business, changing the current heavy asset business structure, and shifting to travel, finance, internet and other light assets models of the industry , and providing a better service platform for the real estate industry. More real estate companies are acquiring mature brand properties, accelerate the Impact on acquisitions development of community-based value-added services such as property or advance the long-term rental market, while actively participating in real estate finance and light asset business, in the future more companies will be transformed through acquisitions China real estate M&A 28 March 2018 PwC 9 1 Domestic M&A activity Outbound M&A activity Data illustration 3 In recent years, real estate companies have achieved business transformation, model switching, industrial expansion, and new business transformation through mergers and acquisitions(2/2) • From the micro point of view: the brand value of real estate services, the differentiation of the real estate industry; from a macro point of view: the transition of residential products suppliers to better service providers.
Load more

Recommended publications
  • Three Red Lines” Policy
    Real Estate Developers with High Leverage to See Inventory Quality Tested Under Broader “Three Red Lines” Policy October 28, 2020 In our view, the widening of regulations aimed at controlling real estate developers’ interest- ANALYSTS bearing debt would further reduce the industry’s overall credit risk in the long term. However, the nearer term may see less headroom for highly leveraged developers to finance in the capital Xiaoliang Liu, CFA market, pushing them to sell off inventory to ease liquidity pressure. Beijing +86-10-6516-6040 The People’s Bank of China said in September that measures aimed at monitoring the funding [email protected] and financial management of key real estate developers will steadily be expanded. Media reports suggest that the new regulations would see a cap of 15% on annual growth of interest-bearing Jin Wang debt for all property developers. Developers will be assessed against three indicators, which are Beijing called “red lines”: whether asset liability ratios (excluding advance) exceeded 70%; whether net +86-10-6516-6034 gearing ratio exceeded 100%; whether cash to short-term debt ratios went below 1.0. Developers [email protected] which breached all three red lines won’t be allowed to increase their debt. If only one or two of the red lines are breached, such developers would have their interest-bearing debt growth capped at 5% and 10% respectively. The first half of the year saw debt grow rapidly among developers. In a sample of 87 real estate developers that we are monitoring, more than 40% saw their interest-bearing debt grow at a faster rate than 15% year over year as of the end of June (see the chart below).
    [Show full text]
  • Placing 400 Million New Shares at HKD 25.25, Underlying Profit
    Company Report: CR Land (01109 HK) Van Liu 刘斐凡 公司报告：华润置地 (01109 HK) +86 755 23976672 [email protected] 国泰君安研究 25 May 2015 Placing 400 million New Shares at HKD 25.25, Underlying Profit Revised up, Maintain fiBuyfl Research GTJA 以25.25港元配售4亿股,调高核心净利，维持“买入” Rating: Buy Maintained z CR Land (fithe Companyfl) plans to raise approximately HK$ 10.1 billion 评级： 买入 维持 by placing 400 million new shares at a price of HK$ 25.25 per placing ( ) share. The management intends to use the raised capital for further land acquisition, development costs and general working capital purposes. 6-18m TP 目标价: HK$29.40 Revised from 原目标价: HK$28.70 z Limited diluted effects with stronger balance sheet. As per our estimates, after the share placing completion, the underlying EPS will increase 0.3% due Share price 股价： HK$25.300 to the underlying profit being revised up and net gearing ratio will decrease 13.0 ppts in 2015E. Stock performance z Raised capital from share placing will help the Company’s land 股价表现 replenishment and new house set up plan acceleration, which is able to translate into earnings growth under the rebounding sales environment. 100.0 % of return z Maintain ‘Buy’. Raised capital from share pricing will help sales increase. 80.0 Expectations of loosening policies and southbound capital inflow with housing 60.0 sales rebound in April 2015 are likely to drive property companies’ valuation upside potential. We revise up the target price to HK$29.40, which represents 40.0 an 15% discount to revised 2015E NAV per share, 12.3x 2015 underlying 20.0 PER and 1.6x 2015 PBR.
    [Show full text]
  • STOXX Hong Kong All Shares 180 Last Updated: 01.05.2015
    STOXX Hong Kong All Shares 180 Last Updated: 01.05.2015 Rank Rank (PREVIOUS ISIN Sedol RIC Int.Key Company Name Country Currency Component FF Mcap (BEUR) (FINAL) ) KYG875721634 BMMV2K8 0700.HK B01CT3 Tencent Holdings Ltd. CN HKD Y 97.0 1 1 HK0000069689 B4TX8S1 1299.HK HK1013 AIA GROUP HK HKD Y 71.8 2 2 CNE1000002H1 B0LMTQ3 0939.HK CN0010 CHINA CONSTRUCTION BANK CORP H CN HKD Y 69.5 3 4 HK0941009539 6073556 0941.HK 607355 China Mobile Ltd. CN HKD Y 67.4 4 3 CNE1000003G1 B1G1QD8 1398.HK CN0021 ICBC H CN HKD Y 59.3 5 5 CNE1000001Z5 B154564 3988.HK CN0032 BANK OF CHINA 'H' CN HKD Y 46.7 6 6 HK0388045442 6267359 0388.HK 626735 Hong Kong Exchanges & Clearing HK HKD Y 37.7 7 10 CNE1000002L3 6718976 2628.HK CN0043 China Life Insurance Co 'H' CN HKD Y 32.3 8 7 CNE1000003X6 B01FLR7 2318.HK CN0076 PING AN INSUR GP CO. OF CN 'H' CN HKD Y 28.9 9 9 HK0013000119 6448068 0013.HK 644806 Hutchison Whampoa Ltd. HK HKD Y 26.7 10 8 KYG217651051 BW9P816 0001.HK 619027 CK HUTCHISON HOLDINGS HK HKD Y 25.5 11 11 CNE1000003W8 6226576 0857.HK CN0065 PetroChina Co Ltd 'H' CN HKD Y 24.2 12 12 HK0883013259 B00G0S5 0883.HK 617994 CNOOC Ltd. CN HKD Y 24.0 13 13 HK0016000132 6859927 0016.HK 685992 Sun Hung Kai Properties Ltd. HK HKD Y 21.6 14 14 CNE1000002Q2 6291819 0386.HK CN0098 China Petroleum & Chemical 'H' CN HKD Y 21.3 15 16 CNE100000205 B0B8Z29 3328.HK CN0054 Bank of Communications Co 'H' CN HKD Y 20.2 16 17 HK0004000045 6435576 0004.HK 643557 Wharf (Holdings) Ltd.
    [Show full text]
  • Vanke - a (000002 CH) BUY (Initiation) Steady Sales Growth Target Price RMB31.68 Up/Downside +16.8% Current Price RMB27.12 SUMMARY
    10 Jun 2019 CMB International Securities | Equity Research | Company Update Vanke - A (000002 CH) BUY (Initiation) Steady sales growth Target Price RMB31.68 Up/downside +16.8% Current Price RMB27.12 SUMMARY. We initiate coverage with a BUY recommendation on Vanke – A share. Vanke is a pioneer in China property market, in terms of leasing apartment, prefabricated construction and etc. We set TP as RMB31.68, which is equivalent to China Property Sector past five years average forward P/E of 9.0x. Upside potential is 16.8%. Share placement strengthened balance sheet. Vanke underwent shares Samson Man, CFA placement and completed in Apr 2019. The Company issued and sold 263mn (852) 3900 0853 [email protected] new H shares at price of HK$29.68 per share. The newly issued H shares represented 16.67% and 2.33% of the enlarged total issued H shares and total Chengyu Huang issued share capital, respectively. Net proceeds of this H shares placement was (852) 3761 8773 HK$7.78bn and used for debt repayment. New capital can flourish the balance [email protected] sheet although net gearing of Vanke was low at 30.9% as at Dec 2018. Stock Data Bottom line surged 25% in 1Q19. In 1Q19, revenue and net profit surged by Mkt Cap (RMB mn) 302,695 59.4% to RMB48.4bn and 25.2% to RMB1.12bn, respectively. The slower growth Avg 3 mths t/o (RMB mn) 1,584 in bottom line was due to the scale effect. Delivered GFA climbed 88.2% to 52w High/Low (RMB) 33.60/20.40 3.11mn sq m in 1Q19 but only represented 10.5% of our forecast full year Total Issued Shares (mn) 9.742(A) 1,578(H) delivered GFA.
    [Show full text]
  • Real Estate and Construction-210204-EN
    Real Estate and Construction Beijing Guangzhou Hong Kong Shanghai Shenzhen 27/F, North Tower 17/F, International Finance 26/F, One Exchange Square 24/F, HKRI Centre Two, 17/F, Tower One, Kerry Plaza Beijing Kerry Centre Place, 8 Huaxia Road, 8 Connaught Place, Central HKRI Taikoo Hui 1 Zhong Xin Si Road 1 Guanghua Road Zhujiang New Town Hong Kong 288 Shi Men Yi Road Futian District Chaoyang District Guangzhou 510623, China Shanghai 200041, China Shenzhen 518048, China Beijing 100020, China Tel: +86 10 5769 5600 Tel: +86 20 3225 3888 Tel: +852 3976 8888 Tel: +86 21 2208 1166 Tel: +86 755 8159 3999 Fax:+86 10 5769 5788 Fax:+86 20 3225 3899 Fax:+852 2110 4285 Fax:+86 21 5298 5599 Fax:+86 755 8159 3900 www.fangdalaw.com Real Estate and Construction 01 Real Estate and Construction Practice Fangda’s Real Estate and Construction Practice Team excels at providing one-stop and full-scale services to leading real estate market players, including real estate developers, real estate private equity sponsors, institutional investors, financial institutions and other corporations and individuals in complicated domestic and cross-border real estate transactions. Our lawyers are frequently appointed as arbitrators in real estate and construction-related disputes. Our strength in this area includes a combination of understanding the traditions of the Chinese market and practice and our abundant experience in serving international clients, complemented by services for non-contentious and contentious cases. We are one of the few firms based in China that can provide integrated real estate and construction related legal services, and present practical advice based on our knowledge and experience in the local market.
    [Show full text]
  • Istoxx® Developed and Emerging Markets Ex Usa Pk Vn Real Estate
    ISTOXX® DEVELOPED AND EMERGING MARKETS EX USA PK VN REAL ESTATE Components1 Company Supersector Country Weight (%) Vonovia SE Real Estate Germany 3.58 Goodman Group Real Estate Australia 2.31 Mitsubishi Estate Co. Ltd. Real Estate Japan 2.14 Mitsui Fudosan Co. Ltd. Real Estate Japan 2.06 Sun Hung Kai Properties Ltd. Real Estate Hong Kong 2.00 Link Real Estate Investment Tr Real Estate Hong Kong 1.79 DEUTSCHE WOHNEN Real Estate Germany 1.71 Sumitomo Realty & Development Real Estate Japan 1.50 SEGRO Real Estate Great Britain 1.44 CK Asset Holdings Ltd Real Estate Hong Kong 1.33 China Resources Land Ltd. Real Estate China 1.14 SM Prime Holdings Inc Real Estate Philippines 1.11 LEG IMMOBILIEN Real Estate Germany 1.06 SCENTRE GROUP Real Estate Australia 1.04 UNIBAIL-RODAMCO-WESTFIELD Real Estate France 1.04 AROUNDTOWN (FRA) Real Estate Germany 0.85 China Overseas Land & Investme Real Estate China 0.84 WHARF REIC Real Estate Hong Kong 0.78 Mirvac Group Real Estate Australia 0.78 DEXUS Real Estate Australia 0.77 Nippon Building Fund Inc. Real Estate Japan 0.77 Stockland Real Estate Australia 0.75 Japan Real Estate Investment C Real Estate Japan 0.73 SWISS PRIME SITE Real Estate Switzerland 0.73 CAPTIALAND INT COMM TRUST Real Estate Singapore 0.71 GECINA Real Estate France 0.70 Ayala Land Inc Real Estate Philippines 0.69 Ascendas Real Estate Investmen Real Estate Singapore 0.68 New World Development Co. Ltd. Real Estate Hong Kong 0.66 CANADIAN APARTMENT PROP REIT Real Estate Canada 0.66 NIPPON PROLOGIS REIT Real Estate Japan 0.63 NOMURA REIT.MASTER FUND Real Estate Japan 0.62 CapitaLand Ltd.
    [Show full text]
  • STOXX Hong Kong All Shares 180 Last Updated: 01.04.2015
    STOXX Hong Kong All Shares 180 Last Updated: 01.04.2015 Rank Rank (PREVIOUS ISIN Sedol RIC Int.Key Company Name Country Currency Component FF Mcap (BEUR) (FINAL) ) KYG875721634 BMMV2K8 0700.HK B01CT3 Tencent Holdings Ltd. CN HKD Y 92.5 1 1 HK0000069689 B4TX8S1 1299.HK HK1013 AIA GROUP HK HKD Y 70.6 2 3 HK0941009539 6073556 0941.HK 607355 China Mobile Ltd. CN HKD Y 64.3 3 2 CNE1000002H1 B0LMTQ3 0939.HK CN0010 CHINA CONSTRUCTION BANK CORP H CN HKD Y 61.8 4 4 CNE1000003G1 B1G1QD8 1398.HK CN0021 ICBC H CN HKD Y 52.5 5 5 CNE1000001Z5 B154564 3988.HK CN0032 BANK OF CHINA 'H' CN HKD Y 40.9 6 6 CNE1000002L3 6718976 2628.HK CN0043 China Life Insurance Co 'H' CN HKD Y 30.3 7 7 HK0013000119 6448068 0013.HK 644806 Hutchison Whampoa Ltd. HK HKD Y 26.2 8 8 CNE1000003X6 B01FLR7 2318.HK CN0076 PING AN INSUR GP CO. OF CN 'H' CN HKD Y 25.3 9 16 HK0388045442 6267359 0388.HK 626735 Hong Kong Exchanges & Clearing HK HKD Y 25.2 10 10 KYG217651051 BW9P816 0001.HK 619027 CK HUTCHISON HOLDINGS HK HKD Y 25.0 11 9 CNE1000003W8 6226576 0857.HK CN0065 PetroChina Co Ltd 'H' CN HKD Y 21.7 12 11 HK0883013259 B00G0S5 0883.HK 617994 CNOOC Ltd. CN HKD Y 20.9 13 12 HK0016000132 6859927 0016.HK 685992 Sun Hung Kai Properties Ltd. HK HKD Y 20.9 14 13 HK0004000045 6435576 0004.HK 643557 Wharf (Holdings) Ltd. HK HKD Y 19.7 15 14 CNE1000002Q2 6291819 0386.HK CN0098 China Petroleum & Chemical 'H' CN HKD Y 18.9 16 15 CNE100000205 B0B8Z29 3328.HK CN0054 Bank of Communications Co 'H' CN HKD Y 17.6 17 17 HK0003000038 6436557 0003.HK 643655 Hong Kong & China Gas Co.
    [Show full text]
  • 2020 Annual Report
    AUGUST 31, 2020 2020 Annual Report iShares, Inc. • iShares ESG Aware MSCI EM ETF | ESGE | NASDAQ • iShares MSCI Emerging Markets ex China ETF | EMXC | NASDAQ • iShares MSCI Emerging Markets Min Vol Factor ETF | EEMV | Cboe BZX • iShares MSCI Emerging Markets Multifactor ETF | EMGF | Cboe BZX • iShares MSCI Global Min Vol Factor ETF | ACWV | Cboe BZX Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. You may elect to receive all future reports in paper free of charge. Ifyou hold accounts throughafinancial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies ofyour shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contactingyour financial intermediary. Please note that not all financial intermediaries may offer this service.
    [Show full text]
  • Investment Savills Research
    Shanghai – October 2020 MARKET IN MINUTES Investment Savills Research Savills team Please contact us for further information RESEARCH James Macdonald Senior Director Community retail garners attention China +8621 6391 6688 Smaller lump sums, lower price points and higher yields, as well as the james.macdonald@ potential for increased operational efficiencies, have attracted investors to the savills.com.cn community retail space. INVESTMENT • Only six deals were concluded in Q3/2020 for a total • Transaction volumes could pick up in Q4/2020 as buyers pull Nick Guan consideration of RMB4.5 billion, down 60% YoY. the trigger on deals and sellers seek to meet sales targets and Head of continue to feel financial pressure. Shanghai Investment • A fall in activity in the third quarter reflects the lack of deal +8621 6391 6688 origination in the first two quarters as a result of COVID-19 as nick.guan@ savills.com.cn well as continued market uncertainty and price disparities. • End-use buyers remain active in the office and business park “ Tighter control over Savills plc markets with three deals concluded in Q3/2020, accounting for Savills is a leading global real developer financing with the estate service provider listed on more than half of the office and business park transactions. the London Stock Exchange. The company established in 1855, has announcement of the 3-4-5 a rich heritage with unrivalled growth. It is a company that leads • The commercial land transaction volume in the first three rather than follows, and now has policy will mean that many over 600 offices and associates quarters of 2020 has already exceeded 2019 full-year volumes throughout the Americas, Europe, by 70%.
    [Show full text]
  • Speed Shifting to a Lower Gear but Quality Is Improving, Maintain
    股 票 研 [Table_Title] Van Liu 刘斐凡 Company Report: Country Garden (02007 HK) 究 (86755) 2397 6672 Equity Research 公司报告： 碧桂园 (02007 HK) [email protected] 27 March 2019 Speed[Table_Summary Shifting] to a Lower Gear but Quality is Improving, Maintain "Accumulate" 速度换低档速但质量提升，维持“收集” 公 司 2018 underlying net profit was in line with our expectation. Top line Rating:[Table_Rank] Accumulate increased by 67.1% YoY to RMB379,079 mn in 2018. Underlying net profit Maintained 报 elevated 31.4% YoY to RMB33,864 mn. 告 评级： 收集 (维持) Contracted sales will sustainably grow but at a slower rate. We estimate Company Report that saleable resources in 2019 may reach over RMB780.2 bn. We estimate sale-through rate to decrease to below 70.0% in 2019 to factor in declining 6[Table_Price]-18m TP 目标价 : HK$13.61 demand in lower-tier cities. Revised from 原目标价: HK$12.28 We expect stable gross margins and healthy net gearing ratio. We Share price 股价: HK$11.960 estimate that the Company’s unit land cost was less than RMB2,742 per 告 sq.m., 32.6% of ASP during Jan.-Feb. 2019. We expect net gearing ratio to 证 报 be no higher than 56.4% during the same period. Stock performance 券 股价表现 究 With slower contracted sales growth, we think the Company should justify a 研 higher NAV discount than our previous expectations. Nevertheless, as we [Table_QuotePic] 研 究 revise up the underlying net profit, we revise up the Company’s target price 券 from HK$12.28 to HK$13.61, which represents a 40% discount to the 报 Company’s 2019E NAV of HK$22.68 per share, 6.1x underlying 2019 PER 告 证 and 1.5x 2019 PBR.
    [Show full text]
  • China Vanke Bloomberg: 2202 HK Equity | 000002 CH Equity | Reuters: 2202.HK | 000002.SZ Refer to Important Disclosures at the End of This Report
    China / Hong Kong Company Focus China Vanke Bloomberg: 2202 HK Equity | 000002 CH Equity | Reuters: 2202.HK | 000002.SZ Refer to important disclosures at the end of this report DBS Group Research . Equity 6 January 2016 H: HOLD (Downgrade from BUY) Shareholding uncertainty overshadows Last Traded Price (H): HK$20.80 (CSI300 Index : 3,540) strong fundamentals Price Target (H): HK$19.60 (6% downside) (Prev HK$23.41) Better-than-expected sales/acquisitions in Dec 2015 will likely lead to decent sales growth in 2016 A: BUY (Under review) Yet, shareholding structure is unlikely to improve in the near Last Traded Price (A): RMB24.43 (HSI : 20,981) term and potential asset restructuring is uncertain Price Target (A): RMB19.31 (21% downside) Shareholding competition will likely distract management Potential Catalyst: Better-than-expected shareholding structure efforts and affect Vanke’s long-term strategy Where we differ: Our FY15-17F EPS are below consensus Share price is under pressure after trading resumption; Analyst Downgrade Vanke-H from BUY to HOLD Ken HE CFA, +86 21 6888 3375 Uncertainty in potential asset restructuring (Details on page 3). The [email protected] difficulties are in: (i) identifying potential acquisition targets to fall in Carol WU +852 2863 8841 the definition of “material asset restructuring”, and to improve [email protected] shareholding structure (or mitigate Baoneng’s influence in Vanke’s Danielle WANG CFA, +852 2820 4915 board/strategy), as well as to strengthen Vanke’s traditional [email protected] residential and new business lines; and (ii) obtaining shareholders’ Andy YEE CFA, +852 2971 1773 approval given current shareholding structure and rich valuation.
    [Show full text]
  • Sustainable Quality Growth Prospect, Maintain “Buy”
    股 票 研 [Table_Title] Van Liu 刘斐凡 Company Report: China Aoyuan (03883 HK) 究 (86755) 2397 6672 Equity Research 公司报告： 中国奥园 (03883 HK) [email protected] 25 January 2018 Sustainable[Table_Summary] Quality Growth Prospect, Maintain “Buy” 持续且有质量的增长预期，维持“买入” China Aoyuan (“the Company”) announced a positive profit alert. The Rating:[Table_Rank ] Buy Company’s net profit in 2017 is expected to record a significant increase of at Maintained 公 least 75% YoY. 评级： 买入 (维持) 司 Strategic layout in the Big Bay Area with proper unit land cost hints at 报 sustainable quality growth prospect. 76.1% of the Company's land bank was in tier-1/ tier-2/ international cities, and its unit land cost amounted to 6[Table_Price-18m TP 目标价] : HK$8.87 告 RMB1,897 per sq.m., representing 18.9% of ASP in 2017. Revised from 原目标价: HK$5.45 Company Report Contracted sales are likely to maintain fast growth momentum. During Share price 股价: HK$6.890 2017, the Company achieved RMB45.59 bn in contracted sales, up 78% YoY. With quality land bank exposure and a healthy financial position, sufficient saleable resources will be launched in 2018 and 2019. Stock performance 股价表现 The Company should justify a lower NAV discount. As we have revised up [Table_QuotePic] underlying net profit, we also revise up the target price from HK$5.45 to HK$8.87, representing a 37% discount to 2018E NAV of HK$14.08 per share, 9.1x 2018 underlying PER and 1.7x 2018 PBR. Therefore, we maintain "Buy". Risk factors include lower-than-expected contracted sales and possible failure in operational activities of overseas projects and 证 redevelopment projects.
    [Show full text]