Glorious Property 0845

Glorious Property 0845

Postby winston » Mon Sep 14, 2009 10:58 am

UPDATE 1-China's Glorious Property eyes $1.5 bln IPO

* Real estate developer seeks to raise HK$11.93 billion
* Price range of HK$4.00-HK$5.30/shr; final price Sept. 24
* Trading debut seen on Oct. 2 (Adds details, background)

By Michael Flaherty

HONG KONG, Sept 14 (Reuters) - Chinese real estate developer Glorious Property hopes to raise up to $1.54 billion in a public offering that comes amid a rush of IPOs from domestic property groups.

The price range of the offering is HK$4.00-HK$5.30 per share, with a base offer size of 2.25 billion shares in total, according to a term sheet obtained by Reuters on Monday.

The offering's roadshow begins this week, with bankers shopping the IPO to institutional investors to gauge demand and determine the ultimate price.

UBS AG (UBSN.VX), JPMorgan Chase (JPM.N) and Deutsche Bank (DBKGn.DE) are handling the offering.

Fellow property developer Evergrande also plans to raise an estimated $1.5 billion, with other Chinese real estate companies also in the IPO pipeline. The companies hoped to list last year, but pulled the plans when markets tumbled. [ID:nHKG164817]

The final price of the Glorious Property IPO is planned for Sept. 24.

Hedge funds and Western banks invested in Chinese property companies two years ago after a real estate boom sent valuations in the sector soaring and produced some successful IPOs.

Such pre-IPO investments were expected to be profitable to investors who thought the credit bubble would last and planned for a quick and easy pay-out after the listing.

But the credit bubble burst, and the ensuing financial crisis quashed those hopes, leaving investors with illiquid holdings worth much less than hoped.

Now, with China lifting a ban on IPOs and the Hong Kong IPO market heating up, companies are rushing to list while the window is open.

Analysts and bankers say that while the opportunity is there, a glut of real estate IPOs may see mixed success, as investors see little difference between the offerings and companies. Getting to market first will be an advantage, they say.

Glorious Property is expected to begin trading on Oct. 2.

http://www.reuters.com/article/marketsN ... 14?rpc=611
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Re: Glorious Property ( IPO )

Postby winston » Fri Sep 18, 2009 7:22 am

Glorious Properties saw its institutional tranche of a HK$11.9 billion IPO deal oversubscribed three times. Great Eagle (0041) chairman Lo Ka-shui was among those bidding for shares, sources said.
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Re: Glorious Property ( IPO )

Postby winston » Mon Sep 21, 2009 7:26 am

The institutional tranche of Glorious Property was oversubscribed by four to five times as it attracted a dozen top names including Henderson Land (0012) chairman Lee Shau-kee who subscribed for US$25 million (HK$195 million) worth of shares, according to a source.

New World Development (0017) chairman Cheng Yu-tung, Chinese Estates (0127) chairman Joseph Lau Luen-hung and Bank of East Asia (0023) also subscribed for the institutional tranche. Each applied for US$20 million to US$50 million worth of shares.

The underlying profit of Glorious Property, excluding the fair value gain from investment properties, is forecast to reach 1.396 billion yuan (HK$1.58 billion) this year.

Source: The Standard HK
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Re: Glorious Property ( IPO )

Postby winston » Mon Sep 21, 2009 10:48 am

DJ Glorious Property Sees '09 Net Pft To Rise At Least 59% On Yr

HONG KONG (Dow Jones)--Mainland developer Glorious Property Holdings Ltd. (0845.HK), which is seeking to raise up to US$1.53 billion from a Hong Kong initial public offering, said Sunday it expects 2009 net profit to jump at least 59% from the previous year.

The company, which is scheduled to list on the Hong Kong stock exchange on Oct. 2, expects net profit for the year ending December of at least 2 billion yuan, up from CNY1.25 billion in 2008, according to the company's IPO prospectus.

Excluding the effects of revaluation gains on property investment, the developer said it expects its 2009 net profit to be at least CNY1.4 billion, up from CNY641 million, Chief Financial Officer Anthony Ching told reporters via a video conference.

Glorious Property, which is seeking to sell 2.25 billion shares in an indicative price range of HK$4.00-HK$5.30 each, plans to spend 70% of its estimated IPO net proceeds of HK$8.4 billion on property development in Shanghai, Hefei and on other new projects across China.

'We intend to further strengthen our market position in Shanghai, Tianjin and Beijing,' Chairman Zhang Zhirong said. 'We'll also selectively venture into other mainland cities.'

As at July 31, the company's land bank in terms of gross floor area amounted to 13.6 million square meters, of which some 20% was in Shanghai and 18% in Tianjin and Beijing. The company, whose portfolio includes apartments, town houses, retail properties and hotels, had 19 projects in nine cities across China as at July 31.

The company generated most of its 2008 revenue of CNY3.95 billion from the sale of residential properties. But in view of rising demand and appreciation potential for commercial properties in China, the developer said it is considering expanding its investment property portfolio by retaining some of its commercial assets for investment purpose.

Apart from property projects, the company will spend about 20% of the net proceeds on repayment of notes and 10% for general working capital.

Glorious Property had planned to list on the Hong Kong bourse in late 2007, but it shelved those plans as investor sentiment toward property developers soured amid measures by Beijing to cool soaring property prices.

The Shanghai-based company's IPO is among the first batch by Chinese developers in more than 15 months, marking the revival of listing plans by real estate companies that had been hurt by the country's cooling of its heated property markets and the global financial crisis.

JP Morgan and Deutsche Bank are the joint sponsors of the IPO. JP Morgan, Deutsche Ban and UBS are joint global coordinators, joint bookrunners and joint lead managers of the deal.

Source: Joyce Li, Dow Jones Newswires
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Re: Glorious Property ( IPO )

Postby winston » Mon Sep 21, 2009 3:48 pm

From Phillips:-


Other risks
Tight policy of money and industry is earlier than expected.
Unavailable to obtain land as planed.
Contractor distributing may result in completion risk of project.


Valuation
Given the government's attitude of keeping stable in real estate market within two years as well as rich projects of being built, we forecast the company will record sales of HK$ 5.9billion and HK$6.8billion in 2009 and 2011 respectively, growth of 49% and 15% y/y; net profit of HK$2.1billion and HK$2.2billion; EPS of HK$1.04 and HK$0.29 and net asset per share of HK$1.62 in 2010.

Our valuation is based on P/B in the industry. Except the low average 1.2x P/B of Japanese and Hongkong local market, domestic market is at high 3x and America is above 2x. Its domestic peer listing on HK with cross region business are also above 2x PB.

Given the rich land bank, high margin and diversity business as well as strong inflation expectation, we give 2.5x PB for 2010 NAPS with 12ms TP of HK$4.61, rating Speculative Buy.
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Re: Glorious Property 0845 ( IPO )

Postby winston » Wed Sep 23, 2009 11:25 am

Reminder: Deadline for Application - Tomorrow @ 8am

===================================

*DJ CIC To Buy US$20-US$30M Of Glorious Property Shares - Source

Dow Jones Newswire
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Re: Glorious Property 0845 ( IPO )

Postby winston » Mon Oct 12, 2009 10:21 am

DJ MARKET TALK:Glorious Ppty Off 18.4% Pre-Mkt;L/T Appeal-SinoPac; Oct 2

0955 [Dow Jones] NEW LISTING: Glorious Property (0845.HK) quoted down 18.4% at HK$3.59 at pre-open, marking 5th consecutive new listing in HK to fall on debut. Despite less aggressive pricing, stock still trades at 15X forecast fully-diluted FY09 EPS; if excluding revaluation of investment properties, P/E will go up to about 22X.

Still, for investors holding longer-term view, "we believe its solid position in Shanghai's property market, already established presence in other key economic cities, ability to offer high quality products and sufficient land bank should make it attractive to investors," says SinoPac Securities.

Source: Dow Jones Newswire
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Re: Glorious Property 0845

Postby winston » Fri Oct 16, 2009 11:14 am

DJ Glorious Property To Buy Two Sites In Tianjin For CNY849M

HONG KONG (Dow Jones)--Shanghai-based developer Glorious Property Holdings Ltd. (0845.HK) said Monday it will buy two parcels of land in Tianjin, northeastern China, for a total of CNY849 million, which it plans to develop as residential projects.

The company, which was listed in Hong Kong on Oct. 2, said the two sites have a total planned gross floor area of 597,000 square meters.

The sites will be developed into low density premium residential homes, comprising low rise apartments, town houses and villas, it said. Pre-sales of the first phase of the development will start as early as the first half of 2011, the company added.

Source: Dow Jones Newswire
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Re: Glorious Property 0845

Postby winston » Fri Oct 16, 2009 11:22 am

DJ Glorious Property To Buy 60% Nanjing Site Stake For CNY1.86B

HONG KONG (Dow Jones)--Glorious Property Holdings Ltd. (0845.HK) said Friday it plans to buy a 60% stake in a site in Nanjing, China, from a state-owned company for CNY1.86 billion.

The Shanghai-based developer said the 213,009-square meter site, which is earmarked for residential property development, could be developed into residential properties with a total gross floor area of 309,700 square meters at a cost of around CNY6.0 billion.

State-owned Nanjing Jiaotong Investment Development Ltd., which has a 40% stake in the site, will have a corresponding stake in the project, Glorious Property said, without specifying when construction will begin.

Glorious Property said it plans to fund the acquisition with the US$1.28 billion it raised in its Hong Kong initial public offering last month.

Source; Jackie Cheung, Dow Jones Newswires
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Re: Glorious Property 0845

Postby winston » Thu Nov 12, 2009 11:34 am

DJ MARKET TALK: JPMorgan Starts Glorious Property At Overweight

1107 [Dow Jones] STOCK CALL: JPMorgan initiates Glorious Property (0845.HK) at Overweight, target HK$5.00, on rising prices at projects in Shanghai, strong earnings growth, attractive valuations.

Says stock one of few developers with exposure to key financial, economic centers of Shanghai, Tianjin, Beijing. Estimates stock trading at FY10, FY11 estimated P/Es of 8.4X, 6.9X respectively, 52% discount to JPMorgan's NAV estimate of HK$7.10. Believes stock can trade closer to average valuation of nearest peers at 12X-13X FY10 estimated P/E, or 30% discount to NAV.

Source: Dow Jones Newswire
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