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Big deal: Sold virtually all legacy businesses

Sold all non-core businesses Acquired three land sites Sold a 44.6% road stake to Pingan Insurance Joe Zhang, COO & Executive Director www.shenzheninvestment.com 3 January 2007 Disclaimers on final page. Big deal: Sold virtually all legacy businesses.

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Big deal: Sold virtually all legacy businesses

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  1. Sold all non-core businessesAcquired three land sitesSold a 44.6% road stake to Pingan InsuranceJoe Zhang, COO & Executive Directorwww.shenzheninvestment.com3 January 2007Disclaimers on final page

  2. Big deal: Sold virtually all legacy businesses SHENZHEN INVESTMENT

  3. Updated and improved: Mass-market property in south China City Government Public 49% 51% Shenzhen Investment (604.HK) 46.4% control 24.3% 22.8% 80% Coastal Greenland (1124.HK) Road King (1098.HK) Property Development Jingdong Expressway Transport 20 toll roads + property + 49% of Sunco (property) 4m sqm of property development, mainly in north China Retaining control as Pingan Insurance becomes a strategic investor Book value: HK$130m New focus: property + Rental Property (HK$2.8bn) SHENZHEN INVESTMENT

  4. Land site 1: Yabao (Shenzhen) • Land site: 285,000 sqm + 330,000 sqm of reservoir • Land site plot ratio: 2.3x • Total GFA: 655,500 sqm • Land cost: HK$550m • Purpose: industrial park-style commercial, office and residential use, similar to Terra Industrial & Digital Park • Location: Meilin Guan Gate, Longgang (bordering Futian District) • How we acquired it: acquiring an industrial company SHENZHEN INVESTMENT

  5. Land site 2: Pingshan (Shenzhen) • Land site: 28,000 sqm • Plot ratio: 3x • Total GFA: 84,650 sqm • Land cost: HK$150m • Purpose: residential use, small units for young families • Location: Longgang District, Shenzhen • How we acquired it: public auction SHENZHEN INVESTMENT

  6. Land site 3: Yezhihu (Wuhan) • Land site: 200,000 sqm • Plot ratio: 2.2x • Total GFA: 440,000 sqm • Land cost: HK$459m • Purpose: residential use • Location: Wuhan’s university district (Nanhu Lake) • How we acquired it: partnership with government SHENZHEN INVESTMENT

  7. Bigger land bank(excluding Road King, and Coastal Greenland) SHENZHEN INVESTMENT

  8. Property completion schedule(excluding Road King, and Coastal Greenland) SHENZHEN INVESTMENT

  9. Introducing a strategic investor into Jingdong Expressway: New chart Shenzhen Investment Pingan Insurance 51% 49% Huayin Traffic An independent third party 91% 9% Jingdong Expressway (63 km) SHENZHEN INVESTMENT

  10. Why sell the 44.6% stake in Jingdong Expressway to Pingan Insurance? • To reduce our exposure to a single project (Rmb2.3bn), while retaining operational control • To get reaffirmation from an independent source about the viability of the project • To free up cash (HK$618m) for land reserves • To increase asset turnover ratio • To forge a partnership with a reputable partner for future collaboration SHENZHEN INVESTMENT

  11. Our NAV estimate(un-audited)Assuming liquidation value, not DCF estimatesRefer to Disclaimer on final page SHENZHEN INVESTMENT

  12. Our gearing is reasonable,There is scope to acquire more land, and competitors(Refer to Disclaimer on final page) SHENZHEN INVESTMENT

  13. Our war-chest: HK$3bn • Potentially, we could have the capacity of spending about HK$2-3bn on acquisitions of land and competitors in the next six months • Money will be used very carefully to ensure value enhancement • Our average cost of land acquisitions will be around HK$2,000/sqm in Shenzhen, and below HK$1,000 elsewhere. • Both figures are much below market prices • Our financing capacity will allow acquisitions of 1m sqm of land reserves in Shenzhen, or 2m elsewhere SHENZHEN INVESTMENT

  14. 7 key components in our strategy • Buy: Buy land at low costs, focusing on “special situations”, not auctions • Sell: Sell almost all non-core business by June 2007 • Acquire: Acquire controlling stakes in troubled rivals, IPO aspirants that are too small, troubled factories, or cash-strapped entities with land • Unlock: Free up cash from vast under-performing rental property. How? Sell some units, raise rents, refurbish, plug loopholes, and cut expenses • Re-develop. Most of our rental property is in Shenzhen, providing vast redevelopment potential given ever-tighter land supply and rising land prices • Motivate: Our incentives system is backward. An overhaul is planned • Narrow: Narrow stock price discount to NAV by sharpening focus, improving transparency, and accelerating asset turnover SHENZHEN INVESTMENT

  15. Recent events: buying property assets, selling non-core business, and raising fund • Oct. 2006, issued 300m new shares at HK$2.91 apiece • Oct. 2006, acquired 22.8% of Coastal Greenland (1124.HK) • Oct. 2006, secured a syndicated 5-year loan of US$465m • Sold a 19% stake in Mawan Power’s for an exceptional profit of HK$371m, and proposed a special dividend • Sold 31% stake in cable TV (Topway) for HK$317m to boost land bank • Sold SEG Hitachi industrial business for HK$70m, making an accounting loss of HK$80m, completed the selling of all non-core businesses • Our 24.3% associate, Road King, obtained an option to acquire 49% of Sunco, one of largest Chinese property developers • We increased our stake in Road King slightly to 24.3% through purchase of more shares in its share sale in November 2006 • In August, we acquired a 91% stake in Jingdong Expressway for Rmb1,205m SHENZHEN INVESTMENT

  16. Disclaimers • This presentation is prepared in good faith, based on audited financial data, publicly available information, and management’s outlook as of today. Macroeconomic parameters could change unexpectedly. The Company’s operating environment and thus strategies could change as a result and without notice. • This presentation does not constitute an offer or an invitation to make an offer for the sale or purchase of the share in the Company trade this or any other stock. Stocks can go down as well as up. Historical performance is no guarantee for the future. • The NAV estimates in this document are for reference only, and have nothing to do with our views of potential realizable values. • This presentation does not constitute any advice or recommendation to invest in the Company and is not intended to form the basis of any investment decision. • The presentation includes certain statements and estimates of the Company based on various assumptions that may or may not prove to be correct and involve various risks and uncertainties. Accordingly, there can be no assurance that such statements or estimates will be realized. SHENZHEN INVESTMENT

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