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can't wait for it to dual list, anyone know normally how long it take??
C
HINA NEW TOWN DEVELOPMENT
A Unique Land Development Player In China
A leading niche player in primary land development.
the only listed Chinese company that focuses on land development in China. It has 16.3m sqm of residential land
available for sale, which bodes well for land sales over the next 5-10 years.
China New Town Development (CNTD) (CNTD SP) is
Beneficiary of rapid urbanisation in China.
will be built to meet the housing needs of a growing urban population. CNTD is set to benefit from this trend.
As urbanisation gathers pace in China, more and more new towns
Plugged into long-term land appreciation in China.
can reap the benefits of land appreciation over a long period of time. This gives it an unparalleled advantage over
home builders who have to replenish landbank every year and take the risk of timing the market.
By securing large-scale land development projects, CNTD
High margins.
could become more and more profitable on the back of land appreciation over time. In 2009, CNTD’s gross margin
hit 60%, beating listed Chinese property developers’ 34% average.
As CNTD’s entry costs are almost locked in in its agreements with local governments, its projects
Dual listing to be a near-term catalyst.
Exchange by introduction. Although there will be no issuance of new shares, the dual listing should help diversify
CNTD’s investor portfolio, enhance liquidity of the stock and boost the likelihood of a re-rating.
CNTD plans to seek dual listing on the mainboard of Hong Kong Stock
Key investment risks:
year, b) huge capex needed at the early stage of land development, c) CNTD being a margin player rather than a
volume player due to capex restrictions and government control of land sales schedule, d) reliance on the Shanghai
Luodian project and Shanghai property market for the next few years, and e) policy and operational risks of the
Shenyang project.
a) Volatile land sales and earnings due to limited land sales for each project within each
Decent discount to NAV.
discount to NAV, which is lower than the sector’s 40% discount to NAV.
We estimate CNTD’s NAV at S$0.21/share. Thus, the stock is trading at a 48%
52-Wk Range: S$0.155/S$0.100 52-Wk Avg Daily Vol. (m): 12.9 Market Cap: S$428m ROE: 7% NTA/Share: S$0.123
Net EPS EV/
Year to Turnover EBITDA Profit EPS Growth PE EBITDA DPS Yield
31 Dec (Rmbm) (Rmbm) (Rmbm) (Rmb˘) (%) (x) (x) (Rmb˘) (%)
2007 363 109 (287) (34.3) n.a. n.a. 24.5 0.0 0.0
2008 564 (455) (846) (53.4) n.a. n.a. n.a. 0.0 0.0
2009 1,087 342 167 6.0 111.2 9.0 9.8 1.4 2.5
somebody is accumulating..........
CNT displaying signs of activity
CNT displaying signs of activity..
Not sure whether it able to meet the listing criteria
ozone2002 ( Date: 21-Jun-2010 14:10) Posted:
China yuan reform..
ChinaNtown will benefit from this..
also awaiting dual listing on HSE |
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China yuan reform..
ChinaNtown will benefit from this..
also awaiting dual listing on HSE
kekekeke..opss
ozone2002 ( Date: 13-May-2010 14:36) Posted:
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Fat finger tech glitch?
12-month TP: $12.50
ok just saw the SGX announcement..
after cup n handle formation .. the sky is the limit!
freeme ( Date: 13-May-2010 00:00) Posted:
Wah.. dual listing sia..
Ho seh liao la.. holding so long and no progress.. time to cheong back to 80cts
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where got report dual listing?
Wah.. dual listing sia..
Ho seh liao la.. holding so long and no progress.. time to cheong back to 80cts
| CHINA NEW TOWN: Not affected by austerity measures on China real estate |
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| Written by Sim Kih |
| Sunday, 09 May 2010 |
 Venue: Pan Pacific Hotel
Time & date: 9.15 am, Apr 30
SOARING PROPERTY prices and a widening rich-poor divide in China has resulted in some people owning several properties and others caught without ability to own a home.
On April 14, China upped the minimum down payment required on the purchase of second homes to 50% (from 40%), and loans to buyers in this segment of the market would be charged at double the People's Bank of China benchmark interest rate.
The bar will also be raised for first-time buyers, with down payments increasing to 30% from 20% if the apartment is larger than 90 square meters.
Banks were also given discretion to refuse mortgages to people buying their third property, and to exercise residency requirements on buyers.
Since the announcement of these measures, stock markets in China and Hong Kong have fallen some 5% to 10%.
The impact, according to a senior government official from China’s Ministry of Housing and Urban-Development quoted by Citi Investment Research & Analysis, will likely be a 20% year-on-year drop in primary housing transaction volumes this year from the peak in 2009, but prices are expected to be higher than in 2008.
Average primary housing prices are also expected to drop 20% from the current level by the end of 2010.
At the AGM of China New Town, its CEO, Li Yao Min, assured shareholders that these austerity measures do not adversely affect the company as it is in the business of preparing rural land for urbanization, rather than residential real estate development.
However, S&P analyst Chan Kah Ling in her report dated 20 Apr cautions that any delays by the local governments in carrying out land sale auctions will have a negative impact on China New Town.
Secondly, tight credit markets will also affect its ability to borrow at attractive rates, which is critical, as its projects are capital intensive at inception.
In addition, tight liquidity may impede the developers from purchasing land at auctions, which will affect China New Town’s profitability, according to the analyst.
China New Town is a pioneer in commercial transformation of rural land for urban use, said its CEO.
In FY09, 80% of China New Town’s revenues came from its share of proceeds in land sales by local authorities in Shanghai to third-party residential real estate developers.
As a land infrastructure developer, the company has been managing the entire process of a new town development for 8 years, from designing the master urban plan, to relocation and resettlement of incumbent residents and enterprises, clearing and preparation of the rural land, to installation of infrastructure.
According to Mr Li, about 60% of China’s 1.3 billion people are still rural residents, versus an ideal agrarian population proportion of 30% when it is envisaged that farmers will be lifted out of poverty.
Until then, China’s push for urbanization will spur demand for the 3 land parcels that the company is developing at Shanghai (Luodian), Wuxi (Hongshan) and Shenyang (Lixiang), he said.
He also clarified that unlike for real estate developers, which are under China’s policy to curb land hoarding, the 2 to 3-year time limit for real estate development after land acquisition does not apply to China New Town.
Neither is the company affected by tightening on grant of mortgage loans.
Minority shareholders then voiced concern over the relatively small amount of interest income generated after cash balances had ballooned to as much as Rmb 1.5 billion as at end 2009.
After all, even going by the 0.36% demand deposit rate of Rmb in China banks as at end Apr 2010, cash balances of Rmb 1.5 billion would have generated at least Rmb 5 million of interest income, five times that of the Rmb 1.2 million reported in China New Town’s annual report.
Its independent auditor separately pointed out that cash influx from sale of land parcels took place progressively over the year, and not necessarily at the beginning of the year when its cash balance was only Rmb 138.0 million.
”We expect profits and cash flow to improve over the next 2 years as land prices are expected to stay firm,” concluded Mr Li.
Executive director Li Yao Min became CEO on 7 Jan 2010. Photo by Sim Kih.
China’s latest measures to address this social imbalance have been described as the most severe ever, and observers are saying more is to come.
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Yes share buy back soon...
huge lot buy up @ leilong price..
pump n dump again?????????
Company buy back shares again ??
another married deal done
5,000 lots.. @ 14c
Standard & Poor's initiates coverage of CHINA NEW TOWN, forecasting RMB295 m profit in 2010
nice!!
NOW i know why CNT is attracting so much interest...
there was an S&P report on this company..
anyone can share? i have read it in hardcopy..
