Sunday, September 1, 2013

Hunza Properties : Dividend Galore! (Kenanga)

Hunza Properties
Price: RM2.01
Target Price: RM2.09
Dividend Galore!

Actual vs. Expectations
FY13 core earnings of RM19.8m met market expectations but exceeded ours as it was ahead of both consensus and our estimates by 3% and 12%, respectively.

Dividends
Declared special interim share dividend based on 25 treasury shares for 1000 existing shares. Based on the last traded share price, this translates to 5.03 sen/share. On top of that, the group is also proposing a final single-tier dividend of 5.60 sen. Hence, implied entitlements for FY13 are 10.63 sen (5.2% yield).


This is a pleasant surprise and the rationale of the special share dividends is to commemorate the transformation of Hunza from a developer into a real-estate landlord following the completion of Gurney Paragon Mall (“GPM”).

Key Results
Highlights
YoY, FY13 core earnings fell by 47% largely due to lack of new launches over the last 2 years while sales of its completed properties (e.g. GP Condo and Infinity) are also at their tail-ends. EBIT margin was compressed by 2.0ppt to 30.2% due to start-up costs from GPM and recognition of more BPB projects (lower margins vs. GP Condo and Infinity).

QoQ, 4Q13 net profit rose to RM152.8m due to RM146.1m fair value gains arising from GP Condo, which commenced its soft launch in Jul-13. Excluding that, core earnings rose by 339% to
RM6.7m on the back of EBIT margins improvements by 16.3ppt to 35.3% due to higher billings and sales of inventories.

Outlook
The group will be launching a new phase in BPB with GDV of RM60m. They also intend to kick-off their Juru land project (integrated project) with an initial phase of RM700m GDV comprising service apartments; but we will only build this into our estimates/valuations when we have more details, i.e. timeline and stage of planning. GPM is now 85% tenanted and is expected to hit 95% tenancy by year end.

Change to Forecasts
Increasing FY14E core earnings by 20% to RM20.6m given the new BPB launch and commencement of income stream from GPM. Although we still expect development earnings to decline YoY, it appears that the stronger-thanexpected occupancy and rental rates of GPM could more than negate the former. Unbilled sales of RM7m provide <6 earnings="" months="" p="" visibility.="">
Rating
.Maintain MARKET PERFORM

Valuation
No changes to TP to RM2.09 based on 35% discount to FD RNAV of RM3.20.

Risks
Sector risks, including negative policies.




Source/Extract/Excerpts/来源/转贴/摘录: Kenanga-Research,
Publish date: 28/08/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock