Ying Li International Real Estate

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#11
stmt of comprehensive income
gross profit for jan-sep decrease by 0.6% but this quarter improve by 41% qoq. however when going further down becomes not so nice. pay more taxes plus losses in forex. Sg purposely strengthen their dollar will come at a negative price for china stock shareholder. think they need a dept to lessen the currency risk. profit attributable to owner increase by 51% while the comprehensive income to owner drop 12.6%. still trying to figure out this gap. can't understand why profit go up but income went down.

bal sheet
asset increase by 1.4 (4,930,514/3,511,075) times while liabilities increase by 2.13 times ( (1,830,886+805,896)/(634,980+600,578) ).

cf stmt
well i am only interested in CF operation. Then i realized its all red red red. Even redder than last year. Most of the money went into bull land or developing properties. Hmmm i think the recent purchase quite siong, making cfo so red.

stmt of changes in equities
retained earnings (jan-sep) improved from 1,452,041 to 2,242,292. it is really impressive. Notice a trend, the majority of the earnings is book in jan. possibly because they launching new units after everyone get their bonus and aws?

i was looking at the retained earnings in equities nevermind about the capital contribution. retained earnings for 2010 getting redder and redder, a sharp contrast from 2009. I was thinking if this is just a cyclical industry as the company is borrowing money from its shareholder. Of cos its cheaper than borrowing from bank etc.

The total profit for 3q is like 1/6 of the total losses from jan to sep. Seems like they have convertible bonds (also can dilute shareholders equity base) which eats up a lot of profit. Profit at 5,767 while paying interest of 18,596. My headache is if they can sustain paying so much interest.

NAV going up, which I like also. But if market condition changes, their asset might be revalued downwards. As long as asset its not sold, to me, its not permanent profit.

gross margin for the year improving due to higher sales (one time income) of properties. however their rental income (recurring income) only up by 3.8% year to date which barely beats the inflation rate.
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#12
I think much of their earnings came from fair revaluation gains. They won't be making much profit (and cash) until they complete their major development projects in 2012.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#13
what do you think of the possibility of securitizing their asset as a reit vehicle?

2012? where do you get the info from. its a long way from now if there's no other good news.
(13-11-2010, 11:48 AM)Nick Wrote: I think much of their earnings came from fair revaluation gains. They won't be making much profit (and cash) until they complete their major development projects in 2012.

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#14
(13-11-2010, 11:12 PM)plaktoz Wrote: what do you think of the possibility of securitizing their asset as a reit vehicle?

2012? where do you get the info from. its a long way from now if there's no other good news.
(13-11-2010, 11:48 AM)Nick Wrote: I think much of their earnings came from fair revaluation gains. They won't be making much profit (and cash) until they complete their major development projects in 2012.

Ying Li did mention that they intend to securitize the bulk of their income generating assets into a REIT in 3-5 years time. This can only occur when the assets are fully developed and have secured significant leasing. The latter may take 1-2 years after development. Ying Li cannot dispose half completed assets or assets with low occupancy rates to a REIT (without income support).

The project development schedule was mentioned in their 2Q 2010 presentation slides -

1) International Financial Centre (4Q 2011)
2) San Ya Wan Phase 2 (2013)
3) Da Ping Project (2013)
4) Lu Zu Project (2014)

Hence, it is apparent that there will not be any significant growth in cash-flow over the next 2 years until IFC has been fully developed and leased out. 2013 will be a bumper year for Ying Li assuming that they managed to sell the completed projects (another assumption) at favourable prices.

It is for this reason why the Management mentioned 'until the development of IFC is completed, the Group's revenue and profits are expected to be muted. IFC is expected to be physically completed in 4Q2011.' in their 3Q 2010 financial statement.

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#15
A recently released research report from Kim Eng:

http://www.remisiers.org/cms_images/Ying...2010ke.pdf

While plenty of its development properties will be coming online in the coming 2-3 years and will generate buckets of cash through rental, a lot of things can happen in between Big Grin

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#16
hi nick, i remembered the rental increase only 3.8%?

Is my worried unverify seeing that D/E and interest coverage not at very good position?
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#17
There will be little growth in revenue and profitability since their current batch of development projects have yet to be completed. The earliest one will be the IFC in late 2011 which will substantially rented out. The bulk of the current rental revenue is derived from their projects developed long ago so any increase will be due solely to increase in rental rates.

After the recent convertible bond issue, I guess it should have sufficient cash to fully fund its development projects. This is where development risk come into play - the company is paying interest NOW for taking on debts to build something which will only generate income in the FUTURE. If they don't make a huge profit in the future, they will be in hot soup. Similarly, if they fully developed everything, secured decent yielding rental contracts, sold a portion of the projects at tidy profit and repaid down a portion of their loans, then the company will do very well. Hence a very high risk high reward investment venture.

Yingli B/S Stats:

Bank Loans: RMB 660 million
2015 Convertible Bonds: S$200 million (RMB 950 million)
Cash: RMB 905 million

Not vested...not a call to buy or sell.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#18
Ying Li share price surged by over 11% to close at 44 cents. The Business Times published a very bullish article on Ying Li this morning and was very upbeat about the International Finance Centre (IFC) which will be fully completed at the end of 2011.

Article: http://www.businesstimes.com.sg/sub/comp...92,00.html?

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#19
In 1 year, I bought 2 S-Chips within 1 mth. After Yanlord, this is the next one.
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#20
In 1 year, I bought 2 S-Chips within 1 mth. After Yanlord, this is the next one.
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