Renhe Commercial 1387

[winston]

Not vested

DJ MARKET TALK: Nomura Starts Renhe At Buy; Targets HK$2.61

1305 [Dow Jones] STOCK CALL: Nomura starts Renhe Commercial (1387.HK) at Buy with HK$2.61 target price. "We see the supernormal profits (70-80% gross profit margins) as derivatives of its innovative way of bringing wholesale malls underground in mature wholesale precincts.

Its competitive edge in land acquisition, construction and operations looks sustainable in the medium term." Says Renhe's pricing power is stronger than conventional commercial properties'; thinks it can benefit from both property recovery, robust consumption rally.

Source: Dow Jones Newswire

[lithium]

I like this one, but 1H result not so nice, let's see how is 2H results first

[winston]

Not vested. From Phillips:-


Risk

The underground space which operates by the Renhe Company is substantially the National Air Defense Project, the business is subject to strict national security sector review, which brings to the company business development uncertainties.

There are some uncertainties on keeping high gross profit margin level.


Valuation

We expect that its net profit in 2010 and 2011 will be RMB 2.05billion and 4.16billion, EPS at 0.12 and 0.24, equivalently, HKD 0.14 and 0.28.

Considering its unique operation model and market judgment on commercial properties, we give the company by P/E of 2011 EPS, 12m TP at HKD 2.24, 60% higher than current close.

[winston]

Not vested

Renhe Commercial Holdings (1387) develops, leases and manages underground malls in 30 cities across 19 provinces.

Its share price rallied from HK$1.02 in November 2008 to a historical high of HK$2.40 in March 2009, but panicky investors dumped shares during the financial crisis. The stock kept falling, dropping to a low of HK$1.13 in March this year, while the Hang Seng index had doubled over the same period.

On Wednesday, the shares rallied to HK$1.82, a 61 percent gain from the trough five months ago.

Renhe converts bomb shelters into malls. It sells about 20-30 percent of its projects' operating rights and keeps the remainder for rent.

It normally arranges bank financing for up to 70 percent of the total purchase price of operational rights, and provides guarantees to secure repayment obligations from the buyers.

Renhe yesterday dropped 6.6 percent to HK$1.68, or 8.1 times historical earnings. The firm looks attractive.

Source: Dr Check, The Standard HK

http://www.thestandard.com.hk/news_deta ... 10805&fc=8

[winston]

Not vested

Up 19% but I cant find any news on it

[eauyong]

Maybe this...

Renhe (01387) ED Lin Zijing resigns for health issues
17 May 2012
Infocast

(Infocast News) Renhe Commercial Holdings (01387) announces that Lin Zijing has resigned from his position as an executive director of the company with effect from today due to his health issues.

[winston]

not vested

Valuation

Renhe share price plunge reflects the company`s poor performance in 2011, weak balance sheet and investors` doubt about its business model.

We believe current share price basically reflects the unfavorable factors and stock valuation is very attractive.

Despite strong uncertainty of sales, we believe the company has objective favorable factor in development of two key projects and their forthcoming operation in H2 is expected to become a key catalyst for stock price.

We`d like to give Renhe “buy” rating and its12-month target price is HKD0.49, equal to 4.5-time P/E for 2013.


Source: Phillips

[winston]

Up 19% on Monday, down 16% today.

Do u understand ?

Do u have confidence investing in this type of counter ?

[behappyalways]

This Chinese Developer Has Three Days to Prove It’s Not Kaisa II
http://www.bloomberg.com/news/articles/ ... t-kaisa-ii

[winston]

not vested

Mall maker expands

Mainland-based Underground mall developer Renhe Commercial Holdings Company (1387) yesterday said it will acquire wholesale markets operator New Amuse in a deal worth HK$6.5 billion.

New Amuse will soon operate eight wholesale markets set in China's six northern cities, selling vegetable and other agri-products, Renhe said.

The firm is wholly owned by Shouguang Dili, in which Renhe's non- executive director Zhang Xingmei holds a 67.86 percent stake. Zhang is the wife of Renhe chairman Dai Yongge.

Renhe will complete the deal by bearing a HK$1.48 billion loan and issuing HK$5.02 billion worth of shares to New Amuse at HK$0.41 apiece, representing a 50 percent discount to its price before trading was halted.

The deal also includes profit guarantees given by New Amuse.

Renhe shares soared 18.29 percent to HK$0.97 in the morning, but sank to HK$0.71 in the afternoon. They closed at HK$0.74, down 9.76 percent.


Source: The Standard HK