Excerpts from Lim & Tan Securities report

Ying Li International Real Estate Limited ($0.159, down 0.3 cent) announced that all the units in Tower One of the Future Beijing project have been fully taken-up on the first day of its launch.

Tower One consist of 585 SOHO apartments and were sold at an average selling price of approximately RMB34,200 per GFA sqm and is targeted to hand over in FY17.

We understand that the total pre-sales consideration is approximately RMB1.06 bln.

Beijing Pipeline ProjectsFuture Beijing, a mix-development project, consists of super high-rise premium residential units, office buildings and retail mails, has an aggregate GFA of approximately 750,000 sqm.
Photo: Company

Notably, this is YL’s maiden foray outside Chongqing through an effective 15.1% stake participation in the project. Other prominent partners in the project include Shanghai Everbright Holdings and CITIC-CP Asset Management.

Future Beijing is a mixed use development project in Beijing with a total GFA of approximately 715,000 sqm, the project comprises high-rise premium SOHO apartments, premium and landmark offi ce buildings and retail malls and is located in the Tongzhou New City Canal Core Area, the second CBD of Beijing.

With the fast rising demand in the Beijing Tongzhou area, the group is currently working together towards launching the pre-sales of Tower Two ahead of original schedule.

Given the group’s patchy track record in the past, we are particularly encouraged with this positive result and believe the project should bring significant value and opportunities to the group, if executed well.

Based on our RNAV estimate of 50 cents, we see fair value lies somewhere between 20-25 cents, based on its Chinese peers’ average of 50-60% discount to book value. 

As such, we think YL could potentially re-rate to its peer group average if the group is able to demonstrate consistent execution capability on its pipeline of projects. 

With the recent pullback in share price, we deem the current share price as an attractive entry point and hence, recommend a Buy rating. -- Lim & Tan Securities

In fact, Tongzhou will also be home to Universal Studio’s 6th theme park, which will be the biggest Universal Studio Theme Park in the world and is scheduled to be completed by 2020.

By then, approximately two million Beijing residents will have shifted in to Tongzhou as part of a massive urban extension project to relief the current over-crowded CBD areas.

This includes approximately one million government officials relocating their city government offices from the current CBD to the Tongzhou area by 2017.

As mentioned in our previous results note, the 3Q FY15 should represent a trough in terms of earnings as YL is likely to recognise sales from its San Ya Wan Phase 2A project in 4Q15.

Share Prices

Counter NameLastChange
AEM Holdings4.0500.020
Avi-Tech Electronics0.405-0.005
Best World Int.1.360-
China Sunsine0.5000.015
Food Empire0.9300.020
Golden Energy0.155-
GSS Energy0.061-
ISDN Holdings0.570-0.005
IX Biopharma0.245-
JB Foods0.565-
KSH Holdings0.340-
Leader Env0.1710.001
Medtecs Intl1.090-0.010
Moya Asia0.072-
Nordic Group0.240-
Oxley Holdings0.235-
REX International0.1760.004
Sri Trang Agro2.2800.030
Straco Corp.0.525-0.035
Sunpower Group0.8050.005
The Trendlines0.089-
UG Healthcare0.635-0.010
Uni-Asia Group0.605-
Wilmar Intl5.3500.070
Yangzijiang Shipbldg1.0800.010
Yinda Infocomm0.120-

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 442 guests and one member online

  • Lionel Lim