CK Asset Holdings Limited · HKEX:1113
CK Asset — FY2019 Earnings Presentation
33 slides from CK Asset's earnings presentation, Mar 19, 2020
Slide 1: 2019 Annual Results
2019 Annual Results 19 March 2020
Slide 2: Disclaimer
Disclaimer Potential investors and shareholders of the Company (the “Potential Investors and Shareholders”) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the Group. The information included is solely for the use in th
Slide 3: 2019 Final Results Highlights
2019 Final Results Highlights Underlying profit increased by 19% Underlying EPS Net book value Dividend per share per share HK$7.78 HK$2.1 HK$93.21+ Y % + 19% +10.5 % + 6% +% -39% DPS (HK$/share) 2.5 2 1.5 1 0.5 0 2015 2016 2017 2018 2019 +% Interim Final 3
Slide 4: Solid year generating HK$29,134 million of reported earnings
2019 Final Results Highlights Solid year generating HK$29,134 million of reported earnings HK$ Million 2019 2018 Change Revenue 96,319 64,481 +49% Underlying profit 28,729 24,134 +19% Investment property revaluation and 405 15,983 disposal Reported earnings 29,134 40,117 Reported EPS (HK$ / share) 7
Slide 5: Quality and resilience of earnings beginning to take shape
2019 Final Results Highlights Quality and resilience of earnings beginning to take shape HK$ Million Revenue by Principal Activity HK$ Million Profit Contribution by Principal Activity 100,000 40,000 90,000 35,000 80,000 70,000 30,000 60,000 25,000 42% 50,000 33% recurrent recurrent 20,000 40,000 15
Slide 6: Surge in HK bookings in FY19; revenue by geography
2019 Final Results Highlights Surge in HK bookings in FY19; 80% contribution from HK & Mainland; 20% from Overseas HK$ Million Revenue by Geography HK$ Million Profit Contribution by Geography 100,000 40,000 90,000 35,000 80,000 30,000 70,000 25,000 60,000 50,000 20,000 40,000 15,000 30,000 10,000 2
Slide 7: Property Sales
Property Sales a nS B
Slide 8: Property Sales
Property Sales HK$ Million 2019 2018 Change Revenue 64,108 34,767 +84% Profit contribution 21,372 12,003 +78% Margin 33.3% 34.5% 8 8
Slide 9: Property Sales by Region
Property Sales Profit HK$ Million Revenue Margin Contribution 2019 2018 2019 2018 2019 2018 Hong Kong 50,020 11,497 18,982 3,580 37.9% 31.1% The Mainland 13,059 22,142 2,074 7,783 15.9% 35.2% Overseas 1,029 1,128 316 640 30.7% 56.7% 9
Slide 10: HK$29,298M contracted sales not yet recognized
Property Sales HK$29,298M contracted sales not yet recognized Hong Kong Overseas HK$8,696M HK$2,302M 90 Repulse Bay Road, Hong Kong The Mainland HK$18,300M 10 Laguna Verona, Dongguan Chelsea Waterfront, London
Slide 11: Property Rental
Property Rental 11 5 Broadgate, London
Slide 12: Property Rental
Property Rental HK$ Million 2019 2018 Change Revenue 7,450 7,635 -2% Profit 6,897 6,930 -1% contribution Margin 92.6% 90.8% 12 5 Broadgate, London
Slide 13: 16 million sq.ft. of investment properties
Cheung Kong Center, Hong Kong 5 Broadgate, London Hong Kong 13 million sq.ft. 16 million sq.ft. of investment properties The Mainland Overseas 2 million sq.ft. 1 million sq.ft. M+, Wuhan 13 813
Slide 14: Increase in fair value of investment properties of HK$228 million
Cheung Kong Center, Hong Kong 5 Broadgate, London Increase in fair value of investment properties of HK$228 million 4% - 8% cap rate 14 M+, Wuhan
Slide 15: Hotel and Serviced Suite Operation
Hotel and Serviced Suite Operation 15
Slide 16: Hotel and Serviced Suite Operation
Hotel and Serviced Suite Operation HK$ Million 2019 2018 Change Revenue 4,185 5,152 -19% Profit contribution 1,345 1,924 -30% Margin 32.1% 37.3% 16
Slide 17: Hotel and Serviced Suite Operation Profit Contribution
Hotel and Serviced Suite Operation HK$ Million Profit Contribution 2019 2018 Hong Kong 1,371 1,978 The Mainland (26) (21) Overseas - (33) Total 1,345 1,924 16
Slide 18: Approximately 15,000 rooms and serviced suites
Hotel and Serviced Suite Operation Approximately 15,000 rooms and serviced suites Average occupancy rate Jan – Jun 19: 89.5% Jul – Dec 19: 71.3% Soft opening of Hotel Alexandra (840 rooms) will soon take place 17
Slide 19: Property and Project Management
Property and Project Management 18 Stars by the Harbour, Hong Kong
Slide 20: Property and Project Management
Property and Project Management HK$ Million 2019 2018 Change Revenue 868 884 -2% Profit 362 371 -2% contribution Margin 41.7% 42.0% 1881 HERITAGE, Hong Kong 19
Slide 21: Aircraft Leasing
eeeeee te Ceeeoae kKGK. ae AARON — Coneeeegn ae
Slide 22: Aircraft Leasing
Aircraft Leasing HK$ Million 2019 2018 Change Revenue 3,192 2,949 +8% Profit contribution 1,515 1,276 +19% Margin 47.5% 43.3% 21
Slide 23: Aircraft Leasing: 134 aircraft
Aircraft Leasing HK$ Million Profit Contribution Lessee’s Location of Operation 2019 2018 Asia 481 518 Europe 438 300 North America 388 302 Latin America 208 156 Total 1,515 1,276 134 Aircraft Average remaining Average age lease term (129 narrow body; 6 years 5 wide body) 4.7 years 22
Slide 24: Pub Operation
Pub Operation 23
Slide 25: Pub Operation
Pub Operation Acquired on 30 October 2019 Leading brewer and pub retailer operating over 2,700 pubs, restaurants and hotels across England, Wales and Scotland Total consideration approximately £2.655 billion 24
Slide 26: Pub Operation
Pub Operation 2019 2018 HK$ Million Change (Nov – Dec) Revenue 3,611 - N/A Profit contribution 555 - N/A Margin 15.4% 25
Slide 27: Infrastructure and Utility Asset Operation
Infrastructure and Utility Asset Operation Over HK$4 billion profit contribution Infrastructure and Utility Asset Operation 26
Slide 28: Infrastructure and Utility Asset Operation
Infrastructure and Utility Asset Operation Infrastructure and Utility Asset Operation Over HK$4 billion profit contribution CK William JV CKP (Canada) JV Sarvana JV Other 2019 2018 40% JV 75% JV 65% JV investments Total Total Change (DUET Group) (Reliance Group) (ista Group) HK$ Million HK$ Million
Slide 29: Interests in Real Estate Investment Trusts
Interests in Real Estate Investment Trusts HK$836million(1) total distribution received HK$ Million 2019 2018 Share of profit of Hui Xian REIT 175 218 Cash distributions received from Fortune REIT 319 320 and Prosperity REIT 494 538 Hui Xian REIT Fortune REIT Prosperity REIT Equity Interest as of 31
Slide 30: Gearing and Maturity Profile
Gearing and Maturity Profile Bank and other borrowings with maturities HK$ Billion Within one year 6.8 Within two to five years 51.8 Beyond five years 21.5 Total 80.1 [●] Bank balances and deposits 60.3 [●] Net debt 19.8 5.7% Net Debt to Shareholders’ Funds Corporate Ratings: Moody’s: A2 (Stable) 5.
Slide 31: Landbank Summary
Landbank Summary Total landbank of 117 million sq.ft. Hong Kong The Mainland Overseas Total(1)(2) Million sq.ft. Million sq.ft. Million sq.ft. Million sq.ft. Properties under 4 84 4 92 Development Investment Properties 13 2 1 16 Hotels and Serviced 8 1 - 9 Suites Total 25 87 5 117 Note: (1) Excludes
Slide 32: Major Property Acquisition in Hong Kong
Landbank Summary Major Property Acquisition in Hong Kong Approximate Developable Date Project Location Group’s Interest Gross Floor Area (sq.ft.) Tung Yuen Street and Shung Yiu Street, Yau March 2019 418,339 100% Tong (Yau Tong Inland Lot No. 45) 31
Slide 33: Thank you
Fei FER SE 7 BR ZS CK ASSET HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability - Stock Code: 1113) Thank you