KWG Property (01813.HK)

[bmann025]

More research (and another NAV estimate) from SWS
http://www.niuniuwang.cn/wp-content/uplo...396_01.pdf

[soros]

Thank You for sharing SWS report.

[bmann025]

Citi: CN Developers See Strong Results; Expects 2017-19 to be at Ultra Upside for Earnings

KWG among top picks

http://aastocks.com/en/stocks/news/aafn-...pular-news

[bmann025]

Update from Philip Securities
http://www.poems.com.hk/en-us/research-a...deval=1813

BOCOM
Chinese developers on outperform, KWG and Logan preferred picks
http://researchreport.bocomgroup.com/std170915.pdf

[soros]

BOCOM reported it picks investing in both KWG and Logan.

But KWG shares ( 01813.HK) closed on friday at $8.79 = 1.01 P/B

and Logan shares (03380.HK) closed on friday at $8.63 = 2.2 P/B

So KWG shares are still lagging behind Logan shares .

[bmann025]

BOCOM reported it picks  investing in both KWG and Logan.

But KWG  shares  ( 01813.HK)  closed on friday at $8.79 = 1.01 P/B

and Logan shares (03380.HK) closed on friday at $8.63 = 2.2 P/B

So KWG shares are  still lagging behind Logan shares .

Plus hidden value in its balance sheet.

See PhilipCapital from Nov. 2016):

'The company`s profitability is further assured by the fact that its cost of land in income statement is relatively cheap, as evident by the cost of land only reaching CNY3,100 per square metre for the first time in 1H2016. In particular, in Guangzhou, the primary operating area of KWG Property, the recent land acquisitions performed by Agile Property and Yuexiu Property implied a cost of CNY35,000 and CNY34,000 per square metre respectively, which are more than 10 times larger than the current cost of KWG Property.'

http://research.cyberquote.com.hk/page/h...61124e.pdf

[soros]

Posted on aastocks website giving target price for KWG at HK $11 :

Bank of America Merrill Lynch, in its report, said about 45% landbank of KWG PROPERTY (01813.HK) 0.000 (0.000%) Short selling $26.62M; Ratio 13.416% is located in Guangdong-Hong Kong-Macao Bay Area, being one of the highest among peers. The broker expected KWG to benefit from the prospects of the Area's property market development.

The broker said KWG targets 30-40% core earnings CAGR for 2018-20, and the group's contracted sales in the first seven months this year grew 29% yearly. Bank of America Merrill Lynch believed the growth in 2018 to continue due to more saleable resources.

The broker raised KWG's target price from $8.1 to $11 with rating Buy, saying KWG is a top pick among small-cap PRC developers.
(Quote is delayed for at least 15 mins.Short Selling Data as at 2017-09-20 16:25.)

[soros]

Reported by SCMP newspaper today :

Controlling shareholder Kong Jianmin bought 600,000 shares at $8.32 on 27 Sept 2017. raising his total holding to 61.21%.

He must think his company shares are still good value at $8.32

[soros]

Mr Kong's holding of KWG shares increased by 600,000 from 1,930,705,152 to 1,931, 395,152. He spent 600,000 x $8.32 = $ 4.99 Mil

Looking back, the final dividend paid on 26 July 2017 was RMB 0.40 (D) + RMB 0.11 (SD) = RMB 0.51 = HK $0.58 per share.

Mr Kong has approx 1.93 Bil shares which means he collected 1.93 Bil x HK $0.58 = HK $1.11 Bil cash payment in July 2017.

So lets hope he thinks like a valuebuddie and decides to buy a few more shares from the market.

[soros]

The SCMP newspaper reported Mr Kong Jianmin acquired additional 300,000 shares on 6 Oct 2017 to raise his total holding to 1,932, 778,152.

It shows the KWG shares are still undervalued ( and Mr Kong acted like a Valuebuddie would and as I had posted on 3rd Oct )