K. Wah International Holdings Limited · HKEX:173
K. Wah International — H1 2020 Earnings Presentation
32 slides from K. Wah International's earnings presentation, Aug 20, 2020
Slide 1: 2020 Interim Results
www.kwih.com 2020 Interim Results 20 August 2020 Delivering Value with Distinctive Quality 1
Slide 2: Disclaimer
Disclaimer Some information contained in this presentation has been obtained from public sources that are believed to be reliable but has not been independently verified. There is no guarantee, representation or warranty provided for the accuracy or completeness for the information contained in this
Slide 3: Table of Contents
Table of Contents Results highlights • Financial highlights • Review of property development • Review of property investment Strategy and Outlook Appendix • Projects summary 3
Slide 4: Results highlights
Solaria, Hong Kong The Palace, Shanghai Results highlights 4
Slide 5: Financial Highlights
Financial Highlights For the year ended 30 Jun (HK$ million) Change 2020 2019 Revenue 8,407 5,124 64% Attributable Revenue* 8,466 5,311 59% Profit Attributable to Equity Holders 2,556 1,526 68% Underlying Profit 2,736 1,480 85% Basic EPS (HK cents) 81.77 48.82 68% Interim Dividend / share (HK cents)
Slide 6: Solid Financial Position
Solid Financial Position As at 30 Jun As at 31 Dec (HK$ million) 2020 2019 Total Assets 70,188 74,559 Cash and Cash Equivalents(1) 5,016 5,443 Total Debts 19,473 20,441 Shareholders’ Funds 40,223 38,886 NAV per Share (HK$) 12.9 12.4 Gearing Ratio(2) 35% 37% EBITDA / Interest(3) 23x 11x Remarks: 1) I
Slide 7: Discipline in Financial Management
Discipline in Financial Management • The average interest rate reduced to 2.5% in 1H 2020 (2.9% in 2019) • A 4-year revolving credit and term loan facility of HK$4 billion closed in Mar 2020 for refinancing, at lower cost, while extending the debt maturity profile, thus enhancing the financing flexi
Slide 8: Quality Projects Engender Strong Performance
Quality Projects Engender Strong Performance • Attributable revenue* from sales of properties amounted to HK$8.17 billion in 1H 2020, mainly from the below projects: Solaria The Palace III 嘉熙 嘉御庭三期 Hong Kong Shanghai Windermere The Peak 嘉濤灣 嘉譽山 Shanghai Nanjing * Attributable revenue comprises the r
Slide 9: Foreseeable Results Provide Sustainability
Foreseeable Results Provide Sustainability • Achieved HK$3.7 billion attributable contracted sales* in 1H 2020 despite the pandemic HK$3.1 billion sales to PRD 10% be booked by 2021 HK$0.6 billion sales booked in 1H 2020 Hong Kong HK$3.7 billion HK$3.7 billion 66% Breakdown by YRD 24% Breakdown by b
Slide 10: Recurring Income from Diversified Investment Portfolio
Recurring Income from Diversified Investment Portfolio • Rental income, including hotel receipts, down 15% to HK$295 million in 1H 2020 • Diversified portfolio: office, commercial, serviced apartments and hotel with total attributable GFA ~280,000 sqm Office Serviced apartments Shanghai K. Wah Centr
Slide 11: Recurring Income from Diversified Investment Portfolio
Recurring Income from Diversified Investment Portfolio • Palace Lane in Shanghai and Cove Gala in Dongguan continued to enjoy satisfactory occupancy in 1H 2020 • An office tower and the commercial portions of K. Wah Plaza, a comprehensive development in Guangzhou, opened in 1H 2019 and started contr
Slide 12: Strategy and Outlook
The Palace, Shanghai K.Summit, Hong Kong Strategy and Outlook 12
Slide 13: Premium Assets in Prime Cities
Premium Assets in Prime Cities • Continue to focus on Hong Kong and prime cities in the Pearl River Delta and Yangtze River Delta regions Shanghai Nanjing & Suzhou Hong Kong Guangzhou Nanjing Kunshan Suzhou Shanghai Jiaxing Dongguan Jiangmen Guangzhou Dongguan Jiangmen Hong Kong 13
Slide 14: Maintain the sales momentum in HK and Mainland China
Maintain the sales momentum in HK and Mainland China Hong Kong: • K.Summit >170 units sold in 1H 2020 for > HK$1.7 billion Up to end July 2020, more than 370 units sold (37% of total), generated HK$3.8 billion sales • Solaria ~80 units sold in 1H 2020 for > HK$600 million Up to end July 20
Slide 15: Maintain the sales momentum in HK and Mainland China
Maintain the sales momentum in HK and Mainland China Shanghai: • The Palace III 8 units sold in 1H 2020 for > HK$380 million Up to end July 2020, 20 units available • Windermere 28 units sold in 1H 2020 for > HK$240 million Up to end July 2020, more than 110 units sold After relaxation of
Slide 16: Visible Pipeline in Hong Kong and Mainland China
Visible Pipeline in Hong Kong and Mainland China • New projects ready to be launched in 2H 2020 Location Project Attri. GFA (sqm) Units Hong Kong 2 Grampian Road, Kowloon 2,000 5 New Kowloon Inland Lot No. 6549, 20,600 1,437 Cheung Sha Wan, Kowloon (Applications for pre-sale consent for Phase 1, 2 a
Slide 17: Visible Pipeline in Hong Kong and Mainland China
Visible Pipeline in Hong Kong and Mainland China • New projects launched in Q1 2020 Location Project Attri. GFA (sqm) Total units Units launched Jiangmen J City (嘉華新都滙) 278,600 2,311 194 Jiajun Garden (嘉駿花園) 50,000 962 270 Jiangmen J City (嘉華新都滙) Jianghai Site No. 02, Jianghai District Jiangmen J Ci
Slide 18: Visible Pipeline in Hong Kong and Mainland China
Visible Pipeline in Hong Kong and Mainland China • New projects to be launched in 2H 2020 Location Project Attri. GFA (sqm) Units Dongguan Bayview, Songshan Lake District (嘉譽灣) 159,000 1,196 Guangzhou Cosmo, Huadu District (嘉雲滙) 187,000 1,474 (Phase I) Guangzhou Cosmo (嘉雲滙) Dongguan Bayview (嘉譽灣) 18
Slide 19: Visible Pipeline in Hong Kong and Mainland China
Visible Pipeline in Hong Kong and Mainland China • New project to be launched in 2H 2020 Location Project Attri. GFA (sqm) Units Suzhou Lot 42, National Hi-Tech District 59,000 514 Suzhou Lot 42, National Hi-Tech District • Continued sales momentum of the launched projects in Hong Kong and Mainland
Slide 20: Sustainable Pipeline in Hong Kong and Mainland China
Sustainable Pipeline in Hong Kong and Mainland China • More projects in the pipeline Hong Kong The Remaining Portion of Tseung Kwan O Town Lot No.70, LOHAS Park Package Eleven Property Development, Tseung Kwan O Hong Kong Lot No.1040 in D.D. No.103, West Rail Kam Sheung Road Station Package One Prop
Slide 21: Sustainable Pipeline in Hong Kong and Mainland China
Sustainable Pipeline in Hong Kong and Mainland China • More projects in the pipeline Shanghai Weifang Village Street project, Pudong District Nanjing Site G89, Jiangning District Suzhou Lot 2019-WG-29, Xiangcheng District 21
Slide 22: Building up Investment Portfolio
Building up Investment Portfolio • Expanding the portfolio with various types of property: The office building, EDGE, at Suzhou Creek, Jingan District, Shanghai, was completed in December 2019 A featured commercial/office complex will be built on the commercial site at Wuyi Road, Changning Distr
Slide 23: Solid Foundation for Long-term Sustainability
Solid Foundation for Long-term Sustainability 1 Encouraging sales underpins results ahead 6 2 Solid financial position High visibility of project fuels future growth pipeline with enhanced asset turn 5 3 Disciplined land Expansion in recurring replenishment at income portfolio to opportune time to d
Slide 24: Appendix: Projects Summary
Windermere, Shanghai Appendix: Projects Summary 24
Slide 25: Major Projects in Hong Kong
Major Projects in Hong Kong 2 4 8 Development projects 1 Marinella 深灣9號 New Kowloon Inland Lot No. 9 6549 2 The Spectra 朗屏8號 新九龍內地段第6549號 3 K.City 嘉匯 The Remaining Portion of 4 Solaria 嘉熙 Tseung Kwan O Town Lot No.70, LOHAS Park Package 6 5 K.Summit 嘉峯匯 10 Eleven Property Development 9 3,5,11,12 2 G
Slide 26: Development Projects in Hong Kong
Development Projects in Hong Kong Year of first sales launch GFA# % Sold Group’s Target KWIH’s Property Portfolio 2019 or 2021 or (sqm) as of 2020 Interest completion before beyond (approx.) Jun 2020 Marinella 深灣9號 69,300 ~ 99% 35% Completed The Spectra 朗屏8號 49,000 ~ 99% 60% Completed K. City 嘉匯
Slide 27: Major Projects in Yangtze River Delta
Major Projects in Yangtze River Delta 南京市 Nanjing City 上海市 8 7 Shanghai City 4 1 6 5 2 9 3 Development projects 1 Grand Summit, Jingan District, Shanghai 7 The Peak, Qixia District, Nanjing 10,11,12 上海靜安區嘉天匯 南京棲霞區嘉譽山 13 The Palace, Xuhui District, Shanghai Royal Creek, Pukou District, Nanjing 2 8 上海
Slide 28: Development Projects in Yangtze River Delta region
Development Projects in Yangtze River Delta region Year of first sales launch GFA % Sold Group’s Target KWIH’s Property Portfolio 2019 or 2021 or (sqm) as of 2020 Interest completion before beyond (approx.) Jun 2020 Grand Summit, Jingan District, Shanghai 68,000 ~ 99% 100% Completed 上海靜安區嘉天匯 Phase
Slide 29: Major Projects in Pearl River Delta
Development projects Major Projects in Pearl River Delta Integrated Project, Huadu District, 1 Guangzhou 廣州花都大型綜合項目 Huadu Jiahua Plaza, Guangzhou 2 廣州花都嘉華廣場 Silver Cove, Shilong Town, 3 Dongguan 東莞石龍鎮星際灣 Bayview, Chashan Town, 4 Dongguan 東莞茶山鎮嘉譽灣 J City, Jianghai District, Jiangmen 江門江海區嘉華新都滙 - Jian
Slide 30: Development Projects in Pearl River Delta region
Development Projects in Pearl River Delta region Year of first sales launch GFA % Sold Group’s Target KWIH’s Property Portfolio 2019 or 2021 or (sqm) as of 2020 Interest completion before beyond (approx.) Jun 2020 Integrated Project, Huadu District, Guagnzhou 廣州花都大型綜合項目 J Metropolis, Xinhuazhen East
Slide 31: Major Investment Properties
Major Investment Properties GFA Group’s Status / KWIH’s Investment Properties Type (sqm) Interest Target completion (approx.) J SENSES Commercial 3,400 100% Completed Hong Kong Chantilly 肇輝臺6號 Residential 5,100 100% Completed Commercial Complex at Twin Peaks 嘉悅商業項目 Commercial 3,500 100% Completed Sh
Slide 32: Thank You!
Thank You! 32
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