Hang Lung Properties (0101)

(24-02-2014, 09:10 PM)opmi Wrote: they forgot the contrarian style of the late David Lawrence.

The best contrarian style player I've seen so far is Hang Lung Properties from HK. THey only acquire land during crisis or when nobody is buying.

(25-02-2014, 08:49 AM)Tiggerbee Wrote:

(24-02-2014, 09:10 PM)opmi Wrote: they forgot the contrarian style of the late David Lawrence.

The best contrarian style player I've seen so far is Hang Lung Properties from HK. THey only acquire land during crisis or when nobody is buying.

Yes. Hang Lung quite good. But the shares like no that good leh. Probably that why Hang Lung is buying Hang Lung prop shares now.

Hang Lung style can do in HK. Cannot do in SG because of QC extension levy.

(25-02-2014, 09:14 AM)opmi Wrote:

(25-02-2014, 08:49 AM)Tiggerbee Wrote:

(24-02-2014, 09:10 PM)opmi Wrote: they forgot the contrarian style of the late David Lawrence.

The best contrarian style player I've seen so far is Hang Lung Properties from HK. THey only acquire land during crisis or when nobody is buying.

Yes. Hang Lung quite good. But the shares like no that good leh. Probably that why Hang Lung is buying Hang Lung prop shares now.

Hang Lung style can do in HK. Cannot do in SG because of QC extension levy.

The land they bought is so cheap that their profit margins are easily 60-70% for the apartments they hold.

However, they are focusing on developing prime commercial properties in China. The commercial properties in HK and the 2 Shanghai commercial properties are cash cows. They had about 34B HKD cash in RMB deposits and net debt is zero. The recent lending curbs by the banks will only serve to their advantage.

Hang Lung will just get sold down with the overall property sector and I will be very happy to buy the stock at bargain prices. And I'm sure the parent is also very happy to buy too. Btw, their last share placement to institutional investors was priced at more than HK$37.48 HKD for proceeds of HK$10.9B. We can now buy the stock at more than 40% discount to the placement price plus at 0.8x NAV.

I've exited from Hang lung with a 20% profit ( and collected the dividends). I've redeployed my proceeds in Springland which is a competitor to Hang Lung in the city of Wuxi. Hang Lung owns the biggest shopping mall in Wuxi while Springland owns the biggest departmental store. Both assets are within walking distance to each other.

Springland was ipo at $5.9HKD in 2010. Stock crossed $8 amid the retail stocks bubble. It had since corrected to $2.9 HKD level. Stock hit an all time low of $2.55 buy has since rebounded to $2.9 level on company share buy backs and bargain hunting by value investors.

But hang lung malls are all over PRC. Comparable meh?


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The expansion strategies for Hang Lung and Springland are different. Hang Lung's phase 2 expansion plans are to build the best shopping malls in China's most prosperous tier 2 cities. Springland's expansion is currently focused in the cities in the Yangtze River delta.

Corporate summary of Springland extracted from their IR website :

Springland International Holdings Ltd. (Stock code: 1700) , one of the leading retail enterprises in the Yangtze river delta area , Successfully listed in The Stock Exchange of Hong Kong Limited on October 21, 2010.

Springland International is a duel-model chain store enterprise, which take the Yangtze river delta area as center, meanwhile it runs store and supermarket with its three great bands-“Springland Store”(Huadi), “Yaohan”(Babaiban), “T&T Spuermarket”(Datonghua). In the most areas of its business market, Springland International holds leading position. According to Ministry of Commerce’s data revelant to local branch, by the year of 2009, in the cities of Yixing Jiangying Liyang Danyang Changshu and Jingtan, Springland’s stores are local highest income department store and/or supermarket.

Prior to the process of the Hong Kong Public Offering, Springland international gets about 80 times oversubscription, sells response ideal, which shows the investment institution and retail investors’ support and their recognition to Springland’s leading position, and it also proves that they are confident of Springland’s business development mode, growth potential, management's vision and ability to execute.

Through this listing, the business of Springland international is promoted to the new era. Looking to the future, Springland interenational will continue cultivating its bussiness market, and further extend to the selected strategic cities of Pan-Yangtze River Delta . Through its leading market position in the local, Springland interenational will further expand and strengthen the company's network, continue to optimize our current operating results of department stores and supermarkets, selective acquisition of attractive shops. Through improving the efficiency of purchasing, further improve and enhance operational efficiency. By integrating customer needs, further reinforce the synergy between department store and supermarket business, continue to expand the business of Springland international in the Pan-Yangtze River Delta region, to consolidate the market position of Springland international. We are determined to become one of the most professional retail enterprises.

(15-06-2014, 03:05 PM)Tiggerbee Wrote: The expansion strategies for Hang Lung and Springland are different. Hang Lung's phase 2 expansion plans are to build the best shopping malls in China's most prosperous tier 2 cities. Springland's expansion is currently focused in the cities in the Yangtze River delta.

Corporate summary of Springland extracted from their IR website :

Springland International Holdings Ltd. (Stock code: 1700) , one of the leading retail enterprises in the Yangtze river delta area , Successfully listed in The Stock Exchange of Hong Kong Limited on October 21, 2010.

Springland International is a duel-model chain store enterprise, which take the Yangtze river delta area as center, meanwhile it runs store and supermarket with its three great bands-“Springland Store”(Huadi), “Yaohan”(Babaiban), “T&T Spuermarket”(Datonghua). In the most areas of its business market, Springland International holds leading position. According to Ministry of Commerce’s data revelant to local branch, by the year of 2009, in the cities of Yixing Jiangying Liyang Danyang Changshu and Jingtan, Springland’s stores are local highest income department store and/or supermarket.

Prior to the process of the Hong Kong Public Offering, Springland international gets about 80 times oversubscription, sells response ideal, which shows the investment institution and retail investors’ support and their recognition to Springland’s leading position, and it also proves that they are confident of Springland’s business development mode, growth potential, management's vision and ability to execute.

Through this listing, the business of Springland international is promoted to the new era. Looking to the future, Springland interenational will continue cultivating its bussiness market, and further extend to the selected strategic cities of Pan-Yangtze River Delta . Through its leading market position in the local, Springland interenational will further expand and strengthen the company's network, continue to optimize our current operating results of department stores and supermarkets, selective acquisition of attractive shops. Through improving the efficiency of purchasing, further improve and enhance operational efficiency. By integrating customer needs, further reinforce the synergy between department store and supermarket business, continue to expand the business of Springland international in the Pan-Yangtze River Delta region, to consolidate the market position of Springland international. We are determined to become one of the most professional retail enterprises.

Springland reduced its final dividend from 12 cts to 8.5 cts and this must have shaken out a few longterm investors. It may be a little early to buy.

It's not because of the dividend. Actually, interim divd was 4c and final divd 10c in 2012, interim divd was 4c and final divd 12c in 2013, interim divd was 10c and final divd 8.5c in 2014. Divd payout had been maintained at about 50% since ipo in 2010. So dividend had been going up as earnings continue to rise.

The sell down was mainly due to institution selling on the retail sector and partly due to selling by Value Partners (the fund exited with a loss). Even GIC vested Intime is down to 3 year low at 10x PE.

Hang Lung to spend HK$40 million on mall upgrades to woo Mong Kok’s shoppers
The appeal of Hang Lung’s Gala Place and Hollywood Plaza malls has been in decline amid a shifting retail landscape, says Knight Frank

Lam Ka-sing
PUBLISHED : Tuesday, 27 March, 2018, 11:39am
UPDATED : Tuesday, 27 March, 2018, 12:25pm

Hang Lung Properties will spend HK$40 million (US$5.1 million) renovating two of its shopping malls in Hong Kong’s bustling Mong Kok area in a bid to enhance rental income in a fast-changing retail landscape.

The appeal of Hang Lung’s Gala Place and Hollywood Plaza has been in decline in the face of stiff competition from nearby Langham Place, owned by Champion Reit, and New World Development’s recently opened The Forest mall, according to Helen Mak, head of retail services at Knight Frank.

“A facelift for the two malls is needed, otherwise they will lose shoppers to other malls,” Mak said. “They may even need to fix the structure of the malls.”

Bella Chhoa, director of leasing and management at Hang Lung Properties, said the improvements will be carried out over the next two years and will include refurbishment of the facades, lift lobbies and car park exit.

More details in http://www.scmp.com/property/hong-kong-c...-mong-koks