Country Garden 2007

[winston]

How China’s overseas property dream turned into a nightmare

Capital controls mean people who signed up for flats in Malaysia cannot send money from mainland

Source: SCMP

http://www.scmp.com/news/china/policies ... -nightmare

[winston]

not vested

COUNTRY GARDEN(2007)

Analysis：

In the first half of 2019, Country Garden realized operating income of 202.01 billion yuan, a year-on-year increase of 53.2%.

Gross profit was 54.86 billion yuan and net profit was 23.06 billion yuan, a year-on-year increase of 56.9% and 41.3% respectively.

The real estate industry in Mainland this year is more challenging than in the past, especially in the first half of the year, because the supervision has become stricter and financing has tightened.

Under such a circumstance, Country Garden`s core indicators such as operating income, gross profit, and net profit have all achieved substantial growth.

When revenue growth strengths, Country Garden also held 222.8 billion yuan in the first half of 2019, which realized positive net cash flow in the middle of the year for three consecutive years after 2017 and 2018.

The ratio of the net cash flow to total assets reached 12.8% and reached 2 times the short-term interest-bearing liabilities.

As a leading company in real estate industry, such coverage makes it unnecessary to worry about short-term debt.

Continuously maintaining net operating cash flow positive indicates that Country Garden can achieve a virtuous cycle of cash through the operation itself, and dependence on external financing to support cash flow is greatly reduced.

Strategy：
Buy-in Price: $10.00, Target Price: $13.00, Cut Loss Price: $7.00

Source: Phillips

[winston]

not vested

Country Garden tackles rumor

Country Garden (2007) denied a claim that officials have been stationed at the company after China's biggest developer saw share prices slump by nearly eight percent yesterday.

There was a market rumor that a working group led by a deputy mayor of Foshan, entered the Foshan-based builder's office and asked the company to provide information on all its saleable assets before considering supporting its bond issuance.

Chinese media The Paper cited sources from Country Garden saying the rumor was untrue. Shares of Country Garden closed 7.7 percent lower at HK$1.32 yesterday.

The developer scrapped a share placement last week, fueling concerns about whether the company had enough money to repay its US dollar bonds in the next year.

Country Garden is burning cash quickly. In July, contracted sales tumbled 60 percent year-on-year to only 12 billion yuan (HK$13 billion), in part because of its exposure in smaller cities.

According to the company's own stress test conducted 12 months ago it needs from about 28 billion yuan to 30 billion yuan in sales a month to generate enough cash to finish presold projects.

Source: The Standard

https://www.thestandard.com.hk/section- ... kles-rumor

[behappyalways]

China’s real estate market roiled by default fears again, as Country Garden spooks investors
https://www.cnbc.com/2023/08/10/china-p ... stors.html


中國房產風暴惡化！碧桂園違約7.1億債息恐爆雷？總裁早賣股跳船...面臨下市風險｜非凡財經新聞｜2023080
https://m.youtube.com/watch?v=iQ3erWTx7SA

[behappyalways]

The former "China's richest woman" Yang Huiyan apologized, emphasizing that she would speed up sales to save herself!
Country Garden suffered a loss of 240 billion, compared with Evergrande's own pocket to fill the hole?

昔"中國女首富"楊惠妍道歉 強調會加速銷售自救! 碧桂園慘虧2400億 比照恆大自掏腰包補洞?｜非凡財經新聞｜20230812

https://m.youtube.com/watch?v=i-_NOMW7s1M

[winston]

by behappyalways:-

Country Garden construction workers "haven't been paid for more than half a year!
Country Garden is deeply in debt crisis, and the completed construction project is suspected of being "tofu dregs".

碧桂園建築工人"半年多未領薪! 碧桂園深陷債務危機 完工建案遭疑"豆腐渣" 中國房企危機連環爆 銷售員成交後也沒錢?｜記者 姚懷真｜【國際局勢】20230824｜三立iNEWS

https://m.youtube.com/watch?v=S0QXdcS7OZ8

[behappyalways]

Country Garden posts record loss, warns of possible default
https://www.theedgesingapore.com/news/c ... le-default

[winston]

not vested

COUNTRY GARDEN HOLDINGS (2007 HK)
Recommendation : SELL
Fair Value : HKD 0.48

WEEDS OVERGROWING.

Likely first ever default on offshore bonds

Not a surprising outcome: we have been warning investors of a default scenario and to avoid bottom-fishing

Painful debt restructuring process ahead


We remain concerned on the outlook of lower-tier cities in China, where Country Garden has sizeable exposure.

It achieved contracted sales (on an attributable basis) of CNY357.5b for FY22, representing a year-on-year (YoY) decline of 35.9%.

This weakness continued in 9M23, with a further dip in its attributable contracted sales by 44% YoY to CNY155.0b.

Although Country Garden’s last reported net gearing ratio of 50.1% (as at 30 Jun 2023) is not considered high, it still has significant upcoming debt maturities, while margin pressure is also expected to continue.

We caution that investors should be mindful of potential risks of debt extension/restructuring which would be long-drawn-out process, and Country Garden had already published a statement saying that it does not expect to be able to meet all of its offshore debt payment obligations when due or within the relevant grace periods.

Even if Country Garden manages to remain as a going concern, we would hold a negative view on its medium- to longer-term growth prospects as recovery in lower-tier cities is likely to be more sluggish and Country Garden will struggle to replenish its landbank amid subdued contracted sales and tighter financing environment.

We also believe Country Garden has much work to do on the ESG front, given its ESG rating.

Source: OCBC

[winston]

not vested

Country Garden: How bad are its debt problems?

By Xie Yu

While Country Garden's liabilities are only 59% of those at Evergrande, it has 3,103 projects across China, compared with around 800 for Evergrande

US$11 billion offshore debt that is deemed in default.

Country Garden's total liabilities were about US$194 billion at the end of June last year, unchanged from the end of 2022.

It faces 108.7 billion yuan (US$14.9 billion) worth of debts due within 12 months, while its cash levels are around 101.1 billion yuan.

Source: Reuters

https://theedgemalaysia.com/node/702698

[winston]

not vested

Country Garden slams winding-up petition

Chinese developer Country Garden (2007) said a liquidation petition filed by a creditor, Ever Credit Limited, a subsidiary of Hong Kong-listed Kingboard (0148), is ungrounded.

The petition was for the non-payment of a HK$1.6 billion loan, clouding its debt revamp prospects and undermining Beijing's effort to restore confidence in the property sector. A court hearing had been set for May 17.

Country Garden's Hong Kong shares were trading down 12.5 percent yesterday. The stock has lost over 75 percent of its value over the past 12 months.

The developer had total liabilities of 1.36 trillion yuan (HK$1.5 trillion) as of the end of June 2023, close to its 1.43 trillion yuan of total assets.

The developer yesterday said 135 of its projects had been listed by Chinese local governments as suitable for financing support.

Source: Reuters

https://www.thestandard.com.hk/section- ... p-petition