China Reserves Edge Below $3 Trillion as Yuan Pressure Increases
Note: The last time such a thing happened was last year when China sold their treasuries to buy gold/bullion. That pushes gold from US$1000 to US$1300 (also when I started prompting at CNMC-Gold Mining Company forum)
Could this be the same again?
Last edit: 6 years 9 months ago by iCann. Reason: update
The word Perennial means a lasting or existing for a long or apparently infinite time; enduring or continually recurring.
Perennial Real Estate Holdings Limited is an integrated real estate and healthcare company headquartered and listed in Singapore. As a real estate owner, developer and manager, Perennial focuses strategically on large-scale mixed-use developments and has a presence in China, Singapore, Malaysia and Ghana with a combined portfolio spanning over 45 million square feet in gross floor area.
Perennial is also a healthcare service owner and operator focused predominantly on China and its healthcare business services include medical, hospital, eldercare and senior housing, and maternal and child health management. Perennial is a dominant commercial developer with sizeable integrated developments in China, of which two are regional commercial hubs adjacent to the two largest high-speed railway stations in the country, being Chengdu East High-Speed Railway Integrated Development and Xi'an North High-Speed Railway Integrated Development.
Other landmark projects in Perennial's portfolio include Beijing Tongzhou Integrated Development, Shenyang Longemont Integrated Development and Zhuhai Hengqin Integrated Development. In Singapore, Perennial has invested in and manages prime iconic properties located in the Civic District, Central Business District and Orchard Road precinct, such as CHIJMES, Capitol Singapore, AXA Tower, TripleOne Somerset, House of Tan Yeok Nee and Chinatown Point mall.
Perennial’s Four Key Sponsors Own an Aggregate Effective Ownership of 78%, namely Mr Kuok Khoon Hong 36.9%, Mr Ron Sim 15.3%, Wilmar International Limited 15.5%, Mr Pua Seck Guan 10.3%., with about 22% i.e. approx. 320m shares floating in the market.
(It is important to note that the founders have been buying back the shares from the open market which started from Jan 2015 at the price of S$1+ till now at about $0.80+.)
Mr Pua was the ex-CEO of Capitamall Trust. His starred projects were IMM, Bugis Street Mall, Plaza Singapura and annex building, Clarke Quay, Katong Plaza, etc.
Market Cap S$1.3B calculated at $0.81 with 1.6b issued shares
Div Yield 0.4%
NAV per Share (S$) 1.63
(Note: important to note there are a few projects not taken into consideration e.g tripleOne Sommerset, AXA Tower, and many other development projects.)
NTA per share 1.51
Net Debt (S$’ 000) 2,282,853
Total Equity (S$’ 000) 3,646,835
Net Debt to Equity Ratio 0.66
Earnings per Share (cents) 2.11
Last edit: 6 years 9 months ago by iCann. Reason: update
Mr Pua Seck Guan, Chief Executive Officer of Perennial, said, “FY2016 has been an eventful year as we commenced strata sales of the office and medical suites at TripleOne Somerset and AXA Tower for trading profit, and recycled our capital to increase our investment in a higher yielding asset, Chinatown Point mall, in Singapore.
In China, the key focus was to manage the development of Perennial International Health and Medical Hub (“PIHMH”) and Chengdu East High Speed Railway (“HSR”) Integrated Development Plot D2 (“Chengdu Plot D2”) to create the signature showcase of our integrated real estate and healthcare strategy.
Much effort was also spent on building the platform of our healthcare business in China through partnerships and joint ventures with the best operators in the market.”
Mr Pua added, “This year, we remain focused on the core markets of Singapore and China with our efforts centred on accelerating the strata sales at TripleOne Somerset and AXA Tower, preparing PIHMH and Chengdu Xiehe International Eldercare and Retirement Home (“Chengdu Xiehe Home”) at Chengdu Plot D2 for the commencement of business, and strengthening the performance of our operating assets in Singapore and China, all of which will boost recurrent income streams.
With the commitment by the Beijing government to establish Beijing Tongzhou District as the new sub-centre of Beijing, Beijing Tongzhou Integrated Development is ideally positioned to benefit from the enhanced infrastructure and connectivity, and the escalating property value.”
FY16 results highlights
PREH posted FY16 net profit of S$35.1m, -39.6% yoy on a 6.4% dip in revenue to
S$110.2m. Although full-year revenue was slightly ahead of our estimate, net profit was below largely due to impairments and revaluation losses taken for the Shenyang Red Star Macalline Furniture Mall and Eden Residences in Singapore, partly offset by revaluation surplus from the Perennial International Health and Medical Hub. Stripping out exceptionals, core net profit would have been S$0.3m, 37% of our forecast.
Singapore impacted by impairments and lower rental income
Singapore made up 54% of FY16 revenue and 16% of EBIT. Revenue fell 4.4% yoy due to lower rental income from TripleOne Somerset on lower occupancy after commencement of AEI. EBIT was adversely impacted by impairment provisions for Eden Singapore and revaluation deficit from Capitol Singapore. PREH recently monetised part of its stake in TripleOne Somerset to Shun Tak and this could create some income vacuum from FY17 onwards.
China earnings growth likely to be 2H loaded
In China, committed occupancy at the Perennial International Health and Medical Hub has crept up to 60% and is scheduled to be operational from 3Q17. In addition, one tower at Chengdu Plot D is expected to be handed over to Chengdu Xiehe Eldercare Home and is expected to commence operations in 3Q17. P1 is expected to have a capacity of 960 beds and pre-marketing activities for these homes have started.
We think FY17 earnings would likely be back-end loaded with new contributions from Chengdu expected to be felt from 3Q17. Hence, we cut our FY17-18F EPS to factor in the reduced stake in TripleOne Somerset and push out the pace of contributions from Chengdu and Beijing projects as well as delay the sale of the remaining Eden Singapore units.
Our RNAV falls to S$1.79, and our TP is cut to S$1.08 (a 40% discount to RNAV).
Key risk is slower-than-expected roll-out of its property and healthcare business.
Germany brings its gold stash home sooner than planned
Germany's central bank is bringing home gold reserves stored in places like New York and Paris faster than planned, it said on Thursday, as confidence in the euro ebbs even in the heart of the currency bloc after a decade of a sluggish economy.
Stashed away at the height of the Cold War in safe havens well out of Moscow's reach, the 3,378-tonne, 120 billion-euro gold stockpile has become a symbol of Germany's economic ascent and a guardian of its stability.