Poly (HK) Investments 0119

[winston]

Not vested.

DJ MARKET TALK: Citi Raises Poly (Hong Kong) Target To HK$12.33

1134 [Dow Jones] STOCK CALL: Citigroup raises Poly (Hong Kong) Investments (0119.HK) target price to HK$12.33 from HK$8.19 on expectation of more asset injections from parent. Broker expects another 1-2 rounds of asset injections by end-2010.

Says parent has another 5 million square meter GFA land bank on hand which could potentially be injected into Poly (HK). Thinks new round could be done as early as 1Q10, may include land plots in Shanghai Huamu, Shanghai Pudong Tangzhen, Hangzhou project.

Says target price of HK$12.33 based on 10% discount to 2010E NAV of HK$13.70. Keeps Buy call

Source: Dow Jones Newswire

[winston]

DJ MARKET TALK:China Developers' Indiscriminate Selloff Continues

1126 [Dow Jones] Second straight day of selloff in HK-listed mainland property stocks, with those falling at least 4.0% including KWG Property (1813.HK), Sino-Ocean Land (3377.HK), Greentown China (3900.HK), Shimao Property (0813.HK), as investors fret over policy headwinds.

Deutsche Bank says it's not worried about second-, third-tier cities, where property prices rising at more modest pace, speculative demand limited, affordability reasonable, "and urbanization will lead to sustained increases in demand for properties."

Overall, house prefers developers with diversified portfolios, higher exposure to second-tier cities. Poly HK (0119.HK) would seem to fit such bill, but stock off 4.7% at HK$10.48, suggesting selloff indiscriminate.

Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: Poly (HK) +3.4%; May Test HK$11 By End-Yr-Tanrich
November 10, 2009

1231 [Dow Jones] Poly (Hong Kong) (0119.HK) +3.4% at HK$9.50, supported by news January-October contracted sales totaled CNY7 billion (US$1.03 billion); year-earlier figures not provided.

Jackson Wong at Tanrich tips stock may head above HK$10.00 level near-term. Says apart from strong sales, buying momentum may also be related to leads from Shanghai Disney theme park, as its projects are located at reasonable distance from planned theme park's location (expected to be at Chuansha Town of Pudong).

"Despite policy concerns on China property sector, Poly is expected to benefit from the Shanghai Disney park leads and I think it could head toward HK$11.00 by the end of this year."

Source: Dow Jones Newswire

[winston]

Noy vested.

DJ MARKET TALK: Citi Ups Poly HK Target To HK$12.46; Keeps Buy
January 7, 2010

1252 [Dow Jones] STOCK CALL: Citigroup raises Poly (Hong Kong) Investment's (0119.HK) target to HK$12.46 from HK$11.69 after raising EPS for 2010 by 6.3% and 2011 by-18.3% to factor in new projects acquired and latest development schedule.

"Following the previous round of asset injection, the parent still has around 5 million square meter GFA land reserves potentially to be injected into Poly HK. A new round of asset injection should be likely done in 1Q10."

Keeps Buy call as says potential asset injections can bring significant NAV enhancement and earning accretion. Stock +1.2% at HK$10.48.

Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK: Credit Suisse Starts Poly HK At Outperform

0838 [Dow Jones] STOCK CALL: Credit Suisse starts Poly (Hong Kong) (0119.HK) at Outperform, target price of HK$10.00 based on historical average 20% discount to 12-month NAV. Adds, target price could be potentially raised to HK$11.50, if asset injection realized.

Says latest share price correction should provide good entry opportunity particularly because "its asset injection story from the parent remains intact." Being offshore listed real estate flagship of China Poly Group, Poly HK has received 3 rounds of asset injections since 2006; more importantly, company enjoys 30%-40% average discount on pricing, which should enhance NAV significantly.

House estimates 12-month NAV at HK$12.30/share, could potentially expand to HK$14.30, if another round of asset injection takes place between expected timing of March, April. Stock +3.6% at HK$8.54 Friday.

Source: Dow Jones Newswire

[winston]

Parental support and property sales plot 197pc surge for Poly by BETH YE

Poly (Hong Kong) Investment (0119) posted a 197 percent surge in net profit last year to HK$662 million, thanks to satisfactory property sales, strong support from its parent and abundant funds raised through share placements.

Total turnover soared 116.5 percent from 2008 to HK$7.19 billion. A final dividend of 4.4 HK cents per share was proposed, up 120 percent from 2008.

Poly will continue replenishing its land bank by three million to five million square meters in the next three to five years, president Xue Ming said yesterday. It allocated capital expenditure of 18.6 billion yuan (HK$21.15 billion) for this year, with 10.1 billion yuan earmarked for land purchase, he added.

The company's contracted sales this year up to Sunday totaled 1.9 billion yuan, with the average price rising 3 to 5 percent to 7,100 yuan per square meter compared with December. "The company will strengthen business expansion in more second- and third-tier cities in the Yangtze and Pearl river deltas," Xue said.

Poly's sales target will increase 20 percent year-on-year to 1.44 million sq m in 2010, with contracted sales revenue expected to grow 25 percent to at least 10 billion yuan, he added.

http://www.thestandard.com.hk/news_deta ... 00223&fc=2

[winston]

Not vested.

DJ MARKET TALK: Poly HK's Results Show Strong Execution -Citi

0951 [Dow Jones] STOCK CALL: Poly (Hong Kong)'s (0119.HK) results show strong execution ability, Citigroup says. Notes FY09 net profit +197% on-year at HK$662 million, topping market consensus forecast at HK$484 million, Citi's forecast at HK$566 million, mainly on contribution from Shanghai Poly Square project.

Tips new round of asset injection from parent likely in 1Q10, with potential size around 2.5 million-3.0 million sqm GFA, including projects in cities such as Shanghai, Shenzhen; says could bring significant NAV enhancement, asset-quality improvement.

Raises target price to HK$12.85 from HK$12.54, based on 10% FY10 NAV discount after increasing NAV; raises FY10-11 EPS forecasts by 2.6%, 1.7%. Notes January contracted sales at CNY1.58 billion, topping many market leaders. Estimates shares trading at 37% NAV discount; keeps at Buy.

"Current valuation is attractive on share price dip and even more convincing with the potential asset injection." Shares down 1.0% at HK$8.90 at pre-market.

Source: Dow Jones Newswire

[winston]

Not vested. From UOBKH:-

Another round of asset injection to be strong catalyst. We expect the asset injection this year will continue to be sizeable and comparable to last year level, i.e. 2m sqm. Yangtze River Delta region and Pearl River Delta region will still be the company’s focus for asset injections. We believe the next round of asset injection in the foreseeable near future is a strong catalyst.


Valuation/Recommendation

We estimate Poly HK’s end-10 forward NAV at HK$14.12/share, vs our previous estimate of end-09 NAV of HK$12.67. The stock is trading at a 36% discount to end-10 forward NAV, basically in line with sector average.

We maintain our target price of HK$12.67, which represents a 10% discount to end-10 NAV and on a par
to end-09 NAV. We believe the market correction offers good buying opportunities for this quality stock.

[winston]

Not vested. From Phillips:-


Risks

Controlling risks from the government to this sector remains the key.
High increase of property sales is unsustainable, leading wave to real estate sales.


Valuation

With projects from the parent recent years coming to payback, we expect Poly HK's EPS will be HK$0.4 in 2010.

Given the forecast of regulation and controlling from the government, average valuation of domestic real estate sector will drop. We expect the safe PE for the first line property stocks is 18x, and for the second line, 16x.

Considered the high growth and extending development, we give 22x PE to Poly HK, 12m TP of HK$8.8, 8% lower than the current price, rating Hold.

[winston]

Not vested.

Poly eyes four China property projects by Sophie He, The Standard HK

Poly (Hong Kong) Investments (0119) will acquire four mainland property projects for HK$3.98 billion from its parent company - its second assets injection since September.

The property developer will pay its parent - state-backed Poly Group Corporation - HK$1.99 billion in cash and the balance through new shares.

A total of 218.85 million new shares will be issued at HK$9.10 each, a 4 percent discount on Monday's close of HK$9.49 before trading was suspended. Poly Group's stake will rise to 54.06 percent from 50.69 percent upon the deal's completion.

Poly (Hong Kong) managing director Xue Ming said that the projects concerned are strategically located in the rapidly growing Yangtze River and Pearl River delta regions, so they will "complement the company's nationwide strategy, diversify the property portfolio and create a strong growth potential."

The four projects - Shanghai Arts Exchange Centre, Shenzhen Longgang, Suzhou Yinshan Lake and Hangzhou Deqing - represent a land bank of 2.71 million square meters and a wide range of residential, commercial and cultural complexes.

Shares of the company resume trading today.


http://www.thestandard.com.hk/news_deta ... 00317&fc=4