CK Asset (former Cheung Kong Property) 1113

CK Asset (former Cheung Kong Property) 1113

Postby winston » Tue May 12, 2015 4:56 am

NEW era begins for Li flagship on June 3 by Imogene Wong

Soon-to-be-listed Cheung Kong Property Holdings is valued at HK$420 billion, with a net asset value of HK$259.3 billion, or HK$67.18 per SHARE, according to an investor presentation made yesterday.

The group, controlled by Li Ka- shing, will begin TRADING on June 3 under stock code 1113.

Shares of Hutchison Whampoa (0013) will cease TRADING after May 26. Analysts said the listing would probably be priced with reference to peers, which means a NAV discount of about 20 to 30 percent.

Estimated turnover of the new firm was HK$46.6 billion last year, with two thirds contributed by local BUSINESSES. Earnings before interest, taxes and other fair value changes were HK$19 billion, or a 40.7 percent EBIT margin.

Local properties accounted for HK$269 billion, or 64 percent of its assets as of February. About a third is located in the mainland, while the rest are overseas, including SINGAPORE, Britain and the Bahamas.

In terms of asset class breakdown, more than half are development properties. About [b]30 percent are INVESTMENT properties[/b] and 16 percent are HOTELS AND serviced suites.

The developer also holds interests in three listed REITs and ARA Asset Management, worth a combined HK$13.1 billion, which are excluded in the firm's valuation.

The firm has more than 14,600 HOTEL ROOMS, of which 83 percent are in 14 hotels in Hong Kong mainly under Harbour Grand and Harbour Plaza brands. The market value of some of its hotel rooms in Hung Hom and Tsim Sha Tsui ranges from HK$5.78 million to HK$10.57 million per room.

Deputy chairman Victor Li Tzar-kuoi said in March that the hotel assets are still BOOKED at a very conservative value without proper revaluation.

Its predecessors, Cheung Kong Holdings and Hutchison, have boosted the fair value of part of the properties by over HK$30 billion last year.

He added that these assets are definitely not for sale under such cheap valuations.

Highlights of its investment properties include Cheung Kong Center in Central, which is valued at HK$27 billion, with annual rent of HK$1.51 billion.

The 1881 Heritage has a higher rental yield of 6.1 percent.

Source: The Standard HK
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Re: Cheung Kong Property Holdings 1113

Postby winston » Wed Jun 03, 2015 11:23 am

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Li Ka-shing’s Property Spin Off Debuts at HK$70 in Hong Kong by Michelle Yun

Cheung Kong Property Holdings Ltd. opened at HK$70 on its first TRADING day in Hong Kong after being spun off from billionaire Li Ka-shing’s conglomerate.

It TRADED at HK$72.95 at 10:21 a.m. local time. That compares with a target price of HK$88 set by Deutsche BANK AG and HK$80 by Jefferies Group LLC.

CK Property combines REAL ESTATE assets of Li’s two main companies, which merged into CK Hutchison Holdings Ltd. last month in the biggest reorganization of his corporate empire. The real estate unit is now the second-biggest landlord in Hong Kong after Sun Hung Kai Properties Ltd., with total assets valued at HK$420.1 billion ($54.2 billion).

“CK Property is a key beneficiary” of a strong residential market in Hong Kong, Deutsche Bank analysts Jason Ching and Tony Tsang said. It has the second-largest inventory of available-for-sale homes in the city this year, they wrote in a note Wednesday.

More than 60 percent of CK PROPERTY’s net assets are in Hong Kong, including Li’s flagship Cheung Kong Center, and 32 percent are in mainland China, according to JPMorgan Chase & Co. The developer is one of the biggest sellers of NEW HOMES in Hong Kong, selling out two residential projects already this year. It has a 2015 sales target of HK$30 billion.

“It’s hard to see the PROPERTY market drop today,” Li told reporters on Wednesday. Construction costs in Hong Kong are double those in the U.S. and Canada, he said.
Li’s family and trust retain the biggest stake in CK PROPERTY of 30.2 percent.

CK Property’s opening price represents a 25 percent discount to analysts’ median net asset value estimate of HK$93.8 per share compiled by Bloomberg. That compares with an average 35 percent TRADING discount to net asset value for CK Property’s peers, according to JPMorgan Chase.

CK Hutchison, which holds Li’s non-property assets from ports to telecommunications, fell 1.5 percent to HK$121.10. The benchmark Hang Seng Index gained 1 percent.
Li unveiled plans to restructure his former company Cheung Kong Holdings Ltd. and its unit Hutchison Whampoa Ltd. in January, saying it would allow INVESTORS to more easily choose between a regional property business and expanding global assets in more than 50 countries.

Source: Bloomberg
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Re: Cheung Kong Property Holdings 1113

Postby winston » Wed Jun 03, 2015 11:38 am

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<Research Report>Jefferies Initiates CK PROPERTY (01113.HK) at Buy with Target of $80

Jefferies, in its report, initiated CK PROPERTY (01113.HK) at Buy with a DCF-based target price of $80, at a 20% discount to NAV estimation of $100.

The broker mentioned that CK PROPERTY is one of the largest developers in Hong Kong.

It should be benefited from the asset size advantage and the reorganization can improve the group's business performance.

The stock's intrinsic value is expected to be released when it becomes a pure real estate stock after the reorganization.

Jefferies estimated CK PROPERTY's underlying profit per share from 2015 to 2017 to be $4.18, $4.87 and $5.75, respectively. Meanwhile, its EPS forecast during the period equaled $1.45, $1.8 and $2.2.

Source: AAStocks Financial News
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Re: Cheung Kong Property Holdings 1113

Postby winston » Wed Jun 03, 2015 6:26 pm

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CK PROPERTY (01113.HK) Initiated at Buy with Target at $83.3 by Citi

Citigroup, in its report, initiated CK PROPERTY (01113.HK) N/A (N/A) Short selling $343.22M; Ratio 5.327% at Buy with the target price of $83.3. In terms of market cap, CK Property is the second largest real estate developer in Hong Kong.

With potential AEI, redevelopment or asset disposals, the broker saw more upside from the newly included Hutchison property portfolio.

Its valuations look attractive and it opened at $70 this morning, a 29% discount to 2015E NAV ($98 per share).

The broker mentioned that there are 3 catalysts that can drive CK PROPERTY to further re-rating. They include good upside potential from asset enhancement, redevelopment or disposals of the old Hutchison investment property portfolio as well as surging China property sales on the back of adopting an “IRR focus” strategy.

Also, it is believed that the dividend payout ratio to gradually increase to 50% by 2017, implying dividend yields of 2.9%, 3.6% and 4.3% for FY15-17E.


Source: AAStocks Financial News
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Re: Cheung Kong Property Holdings 1113

Postby winston » Thu Jun 04, 2015 6:33 am

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Cheung Kong PROPERTY starts on high note

Cheung Kong Property (1113) ended at HK$74.10 on its first day of TRADING yesterday, up nearly 6 percent from the opening price of HK$70.

"The restructuring plan of CK Property and CK Hutchison is 99 percent completed," beamed chairman Li Ka-shing at Cheung Kong Center. He said he would only increase, never reduce, his stake in the company. "I am happy, while the shareholders are also joyful ... I have full confidence on the outlook of the two companies."

Analysts consider the merger plan to have successfully unlocked the value of Cheung Kong's real-estate assets, as the closing price of CK Property represented a 25 percent discount to the firm's reference net asset value per SHARE of HK$98.64.

That compares with an average 35 percent TRADING discount to net asset value for its peers, JPMorgan said.

The opening price of HK$70 is almost 50 percent higher than the reference price set for the Hang Seng Index. It also means CK Property has added 219 points alone for the benchmark index yesterday with the HSI rising 190 points.

Listed by the way of introduction, investors of CK Hutchison (0001) on May 26 were given a one-for-one exchange in CK Property shares. This translates to an overall 16 percent gain on the first day of TRADING.

Li's family and trust retain the biggest STAKE in CK Property of 30.2 percent.

"It's hard to see the property MARKET drop today," Li said yesterday, as construction costs remain high. He again called on people to buy a flat if it is for self-use and is affordable.

The highest target price of HK$88 is set by Deutsche BANK, while CLSA put it at HK$74. CK Property is now the second-biggest landlord in Hong Kong after Sun Hung Kai Properties (0016), with total assets of HK$420.1 billion.

CK Hutchison, which holds Li's non-property assets from ports to telecoms, fell 4 percent to HK$118.

The conglomerate also announced yesterday it was redesignating Victor Li Tzar-kuoi to GROUP co MANAGING director from managing director. He remains deputy chairman.

Canning Fok Kin-ning has been redesignated executive director and group co-managing director from non-executive director .

NEW appointments were also announced of several executive as well as non-executive directors.

Source: BLOOMBERG
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Re: Cheung Kong Property Holdings 1113

Postby winston » Thu Jun 04, 2015 11:10 am

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<Research Report>C Suisse Initiates CK PROPERTY(01113.HK) at Outperform with Target Price $86

Credit Suisse initiated CK PROPERTY(01113.HK) at Outperform with target price of $86, based on a 21% discount to FY15 NAV of $109.1 per share with potential upside of 16%.

The research house pointed out that CK PROPERTY is one of the largest property companies in the world.

The company is the second largest office landlord in Central. Since the Central office is on a up-cycle at the moment, it is believed that CK PROPERTY can outperform its counterparts for related performance.

In terms of land sale market, CK PROPERTY was almost absent from the market in Hong Kong since 2013. It is estimated that the company will resume its substantial market share in the land sale market by spending $10 billion on land reserves in annualized terms.

Credit Suisse expected CK PROPERTY's FY15-17 EPS forecast to be $5.66, $6.73 and $7.16, representing a 13.2%, 19% and 6.4% growth on a yearly basis.

Source: AAStocks Financial News
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Re: Cheung Kong Property Holdings 1113

Postby winston » Thu Jun 04, 2015 11:12 am

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<Research Report>M Stanley Initiates CK PROPERTY at Equalweight with Target Price $71

Morgan Stanley initiated CK PROPERTY(01113.HK) at Equalweight, with target price of $71, representing a 25% discount to forward NAV estimates of $95 per share.

Despite potential index inclusion and potential for future cooperate activities, the value has been reflected in the valuation.

In terms of yesterday's closing price at $74.1, the company is trading at 2015 P/B of 1.1x, 2015 P/E of 14x and a 22% discount to forward NAV estimates.

However, the gearing is higher, with debt-to-equity ratio at 16% as of May 2015.

The research house expected CK PROPERTY's FY15-17 EPS forecast will be $5.16, $4.95 and $5.39 respectively.

It is expected that the dividend payout for this year will be 35% (DPS: HK$1.8), as compared with that of approximately 20% to 30% historically.

Source: AAStocks Financial News
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Re: Cheung Kong Property Holdings 1113

Postby winston » Fri Jun 05, 2015 6:10 am

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CK Property fell even as investment banks have turned bullish on what is now one of Asia's largest real estate developers.

Some shareholders of what was previously known as Hutchison Whampoa might have dumped some of their shares.

UBS said CK Property have more room to raise rents than its rivals.

Credit Suisse said the firm could benefit from a recovering office market in Central where it is the second-largest landlord and could boost investment return by shoring up its local land bank.

Source: The Standard
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Re: Cheung Kong Property Holdings 1113

Postby winston » Fri Jun 05, 2015 11:32 am

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<Research Report>Macquarie Initiates CK PROPERTY at Neutral with Target Price $70.64

Macquarie Initiates CK PROPERTY (01113.HK) at Neutral, with a target price of $70.64.

The research house believed that the current price has already factored in a number of positives, including synergies from group restructuring, property reappraisal and potential inclusion in an index.

With YTD share price rally of approximately 45% (against that of approximately 18% in the sector), CK PROPERTY was excluded from the top picks in the Hong Kong developer space.

Source: AAStocks Financial News
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Re: Cheung Kong Property Holdings 1113

Postby winston » Wed Jun 10, 2015 10:02 am

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Li Ka-shing Adds Holdings in CK PROPERTY (01113.HK)

CK PROPERTY (01113.HK)'s chairman Li Ka-shing acquired 1 million company shares on 5 June at an average price of $67.28 per share, involving $67.28 million, as disclosed by the information of HKEX.

Source: AAStocks Financial News
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