Evergrande Profit Warning: 1H
net profit Rmb14.7b ↓46%YoY
w/ national sales promotion activities (discounts),
↑ marketing exp, FX losses & invsmt in new energy vehicles
è consolidated statement losses. BofA remains only underweight on the street. PO HK$15
4 property mgt firms included in HK-SZ stock connect: Ever Sunshine (1995 HK), Powerlong CM (9909 HK), Times
Neighborhood (9928 HK), & CC New Life (9983 HK) - effective Sep 7.
China home purchase LTV stood at 32.2%
According to E-house research, in 2Q20, LTV (loan to value) on home purchase was 32.2%, which was up by 0.4ppt YoY.
HK & Mainland developers compete to buy land next to GBA’s high-speed railway stations
In next 3-5 years, 18 stations will be offered for tender, with
potential to be developed under the so-called
transport-oriented-development (TOD) model. SHKP and NWD are each
working on TOD projects in the GBA.
FDI into China
↑ 15.8%YoY to Rmb63.47b in July. (Xinhua)
7M RE Invsmt
↑12%YoY. (The Paper)
New home sales volume +22.9% YoY but
↓12.4% WoW in 17 major
cities in the past week (CREIS)
59 of top 70 cities saw primary housing ASP
↑MoM in Jul vs 61 in Jun. BJ
↑0.6%MoM. (The Paper)
Authorities set "3 red lines” to control debt gwth.
1) Liability/Asset ratio (excl pre-sale pmt they got from buyers)
shldn’t >70%; 2) net debt ratio shldn’t >100%; 3) Cash/short-term
liability ratio shldn’t <1x. (QQ)
property platform KE, backed by SoftBank & Tencent,
↑87% in its US trading debut a/f raising $2.1b in IPO.
(announcement) announced 1H20 results Core net profit attributable to owners +21% to Rmb2.45bn for Aoyuan. The gross margins stood at 29.4% which
was 0.5ppt lower YoY for Aoyuan.
Country Garden (2007 HK)’s equity invsmt in 2 A-shr co’s terminated
Monarch (002798 CH), & Monalisa tiles (002981 CH), announced 1H20
were terminated (toilets fixtures & tiles manufacturing). Country
Garden indicated it will continue exploring
invsmt along the value chain. CG had planned to buy 6.5% & 6.2%. Vs the price agreed in 1H20, the 2 stocks are + 80%-100% already.
Tahoe defaulted again with overdue payment of Rmb818m
(the paper) 4th
default for Tahoe so far this yr.
Sino Land to leave Hang Seng Index;
Alibaba, Xiaomi, WuXi Bio to be incld, effect on Sep 7. (NY Times)
Luxury resi site at Jardine's
Lookout changing hands for HK$850m. Plot size 17,094ft2, avg priceHK$82,000 based on GFA 10,256/ft2. (Standard)
Capital raises $900m for education, property deals. (Mingtiandi)
A office vacancy in HK’s Central
↑ to 5.6% in Jul from 5% in Jun as weak demand. (Mingtiandi)
were only 9 new homes sold in Sat as 46 new confirmed covid-19 cases. (HKET)
Kerry Prop sold another unit of Mont Rouge for HK$83m
1,699sqf GFA apt = HK$49k psf. Compares to another unit sold for HK$50k psf last month.
NWD sold 2 units @ Fleur Pavilia, North Point for HK$84m (HK-01)
1,033 sqf GFA unit for HK$43m (HK$41k psf) on a 4yr payment plan + a 4 br unit. Has sold 99% of the project in total.
Sino sold another unit at St. George Mansion (MingPao)
unit for HK$115m / HK$53,738 psf – a record high ASP for apts in Ho Man
Tin district. Sino sold 2 units at St. George Mansion so far.
loss-making secondary market transactions recently (HK-01)
HK-01, at least 16 secondary sales since mid July where seller suffered
a loss on the sale (of HK$300k to HK$8m+) after taxes (eg SSD on units
sold w/in 3ys of purchase).
cuts full year economic outlook (Bloomberg)
HK govt revised 2020 f/c to record low range of -6 to -8% (from -4% to -7%).
Index -0.09%WoW, Mass Index +0.35%WoW, Small & Medium Index +0.11%WoW, & Large Index -1.17%WoW. (Centaline)
>>> Large Index the largest
Industrial sells data center at 26A Ayer Rajah Crescent, Singapore to Equinix Singapore for S$125m. (Co)
flags unauthorised loan application, tax delinquency by sponsor. Unauthorised Paycheck Protection Program loan application submitted on behalf of master lessor of
Queen Mary hotel. (Biz Times)
Eagle Hospitality Trust 2Q loss
US$38.9m, mainly impairment loss on trade receivables from uncertainty on master lessees' ability to make rental payments & fulfil
its obligations. Revenue US$15.7m (34.4% below projected), NPI US$13.9m (31.6% below projected). (Biz Times)
JTC to launch an industrial site at 160, Gul Circle site
for tender. Govt received a committed bid price of not <S$2m for the Biz 2 site in Tuas. (Biz Times)
Tivoli Lodge condo in
Geylang up for collective sale w/ S$17.3m guide price. (Biz Times)
Cromwell E-Reit 1H DPU
↓15%YoY to 1.74 € cents, gross revenue
↑13.7%YoY @ €93.7m, NPI
↑6.6%YoY to €57.7m. (Biz Times)
Aims Apac Reit issued S$125m, 5.65% perpetual
Logistics Trust issues 2.2m units to mngr as payment of base fee for Apr 1-Jun 30, 4m units as payment of performance
fee for FY ended 31 Mar 2020. (Co)
Les Smith reveals A$500m redevt
plan for Northcote Plaza, Melb. (SMH)
GIC / Charter Hall acquire 49% stake in Ampol Prop Trust
which will own 203 convenience retail props in Australia for A$682m. (Co)
Open House 3Q operating income Y11.41b,
↓9.4%YoY. NI Y23.76b vs. Y8.35b YoY. Net sales Y121.63b,
↓1.7%YoY. Still sees FY operating income Y62b, NI Y59b, net sales Y570b, FY div Y80. (Co)
Office approves raising up to Rs20b via debentures. to
invest Rs15b nxt 2yrs to add 2.6mft2.
Malaysia GDP xpctd
to ↓ up to 4%YoY in 2020,
exceeding initial project 2.4%, per RAM Ratings. (Star)
Prop devrs in the Philippines are
considering novel alternative uses for shopping malls as more people stay h
ome. SM Prime leasing out some of its parking lots for longer-term car storage; Ayala
Land plans to convert
areas & lease to e-commerce back-end facilities & medical clinics. (Biz Times)
AREIT listed & closed at 24.9/sh,
↓8% from its IPO price pushing up 2021E yld to 6% in our est. Trading in
the stock appeared to have been
slowed by the fact that not all brokers were accredited as yet to trade in
REITs. (Biz World)
Philippine SEC probes complaint
AREIT trade orders unexecuted. An initial investigation showed brokers’ online
systems were not prepared for trading REITs, which
led to rejection of retail investor’s buy & sell orders. (BBG)
Asset World 2Q loss Bt876.8m, or Bt0.027/sh. (Co)
* My pa holdings: BAC US, 1 HK, 6 HK, ST SP, TEAM US, GOOGL US, AMZN US