Hongkong Chinese (0655)

[bongster31]

hi guys/gals,

this gem has finally awakened n slowly creeping up.

[Image: 2010Nov-HongkongChineseLtd-1200x600-3.png]

I find today's announcement on the latest valuation of Mandarin Gallery and Mandarin Orchard - OUE's principal property assets on Orchard Road - rather interesting.....
http://info.sgx.com/webcoranncatth.nsf/V...D003C65C2/$file/Announcement_on_Valuation_of_MOS_MG.pdf?openelement

Both properties - sitting on 99-year leasehold (from 1Jul1957) land owned by Ngee Ann Kongsi - have been revamped/updated at substantial costs (funded by debts) last year. As the remaining land leases have less than 46 years to run, unless their rental rates (and those along the Orchard Road belt) continue to hold or rise over time, the capital values of these 2 property assets will likely have to fall with the remaining lease periods.

It is also interesting to note that based OUE's last done share price of $2.99, Mr Market is attaching a 31% premium above its NAV/share of $2.28 as at 30Jun10. It looks like Mr Market is quite willing to value this counter based on and closer to its RNAV, which is not the case for most other property counters.

Hi dydx,

have u notice this counter called hongkong chinese 0655.hk? NAV HKD3, current price HKD1.05. they have a big stake in the lippo fund which in turn own OUE.

Vested in the former.

cheers,
bongster31

[soros]

The last price for No. 00655.hk at closing of market trading on 4 Mar 2011 stands at $1.75 compared to its NAV @ $2.45 . I think this share may still have some potential to climb higher .

[bongster31]

Full Year Results for this gem is out few weeks ago. Noted the NAV has moved up significantly..

The net asset value of the Group remained strong and increased to HK$8.0 billion (2009 — HK$4.5 billion). This was equivalent to HK$4.4 per share (2009 — HK$2.5 per share). The increase was mainly attributable to the improved performance during the year and the share of equity movement arising from the acquisition of direct and indirect interest in OUE under LAAP at a discount.

Share price has moved up significantly higher since last year. Positive news by OUE recently.

[soros]

Shares are up above $2 level and back near its 2008 high with NAV at $5.14