Neo-China +16.7%; Citi Starts At Buy, HK$3.03 Tgt
Principally engaged in property development and investments in mainland China.
Business Review - For the year ended April 30 2007
During the period under review the Group underwent an effective consolidation of our businesses in accordance with its strategic plan focusing its efforts and resources to accelerate the high potential property investment and development in several cities in PRC. The turnover of the Group increased by 314% to HK$2780 million thus resulting in the gross profit contribution increased by 464% to HK$342 million. The consolidated net profit of the Group sustained an increased of over 368% for three consecutive years fulfilling the promise to the investors. During the year the share price of the Company¡¦s share performed well thus enhancing the value for the shareholders of the Company.
Land Bank
The Group has successfully accumulated a valuable land bank representing a diversified portfolio of properties in selected cities in which we intend to focus on development activities.
Over the year through taking part in mainly acquisitions of equity interests and by other means of increasing our equity interests in projects the Group had increased its land bank by approximately 7 million sq.m. GFA an increase of 230% over last year.
The Group plans to expand its land bank to 15 million sq.m. GFA by this year end reflecting its very strong growth potential which ensures economics of scale and diversification. Beyond 2007 The Group¡¦s rate of land bank expansion will be at more sustainable levels with the Group planning to expand its land bank by 2 to 3 million sq.m. GFA each year such that it reaches 20 million sq.m. GFA by end of 2009.
In the expansion of the its land bank the Group is focused on tier 1 and fast growing tier 2 cities which offer good return potential.
As at the date of this announcement the Group has 11 projects under development in eight cities. These 11 projects have an aggregate site area of 5.4 million sq.m. and an aggregate GFA of approximately 10 million sq.m. or saleble GFA of approximately 9.2 million sq.m. including completed property developments with a total salesable GFA of 114786 sq.m. properties under development with a total planned salesable GFA of 1.9 million sq.m. and properties held for future development with a total planned GFA of 7.2 million sq.m..
Development Projects
The Group has focused on a mixture of developments ranging from residential complexes and serviced apartments to retail and office properties and high-end hotels. Only approximately one third of our properties are exclusively residential complexes whereas the remainder of our projects are a mixture of property types: three projects include hotels two include offices three have apartments and over half of our projects offer retail space. We believe that by diversifying our portfolio in this manner we reduce our dependence on any particular sector of the market as well as position ourself to take advantage of a greater variety of future opportunities as we build development expertise across a broad range of property types.
Neo-China Group (Holdings) Limited is an investment holding company engaged in property development in China. The Company develops quality residential and commercial properties mainly targeting middle-to-high income occupants in Mainland China. It has 11 projects under development in eight cities. It focuses on a mixture of developments, ranging from residential complexes and serviced apartments to retail and office properties and high-end hotels. The Company’s subsidiaries include Capital Team Investment Limited, DIVO Success Limited, Eastern Winway Limited, Joyful Fortune Limited, Lead Mix Limited, Leadway Pacific Limited, Lucky Merit Development Limited, Neo-China Property Limited, Phoenix Real Property Limited, Reliapoint Ltd, and Sunkit Development Limited. On February 28, 2007, the Company completed the acquisition of 67% equity interest in Hunan Qianshuiwan Shuangya. On February 28, 2007, the Company acquired 100% equity interest in Zhongzhu Jiazhan Real Estate.
+852-25448000 (Phone)
Quarterly
(Apr '07) Annual
(2007) Annual
(TTM)
Net Profit Margin 52.70% 29.43% 29.43%
Operating Margin 7.88% 23.19% 23.19%
EBITD Margin - 3.95% 23.31%
Return on Average Assets 7.08% 8.90% 8.90%
Return on Average Equity 21.22% 26.24% 26.24%
Employees 890
Principally engaged in property development and investments in mainland China.
Business Review - For the year ended April 30 2007
During the period under review the Group underwent an effective consolidation of our businesses in accordance with its strategic plan focusing its efforts and resources to accelerate the high potential property investment and development in several cities in PRC. The turnover of the Group increased by 314% to HK$2780 million thus resulting in the gross profit contribution increased by 464% to HK$342 million. The consolidated net profit of the Group sustained an increased of over 368% for three consecutive years fulfilling the promise to the investors. During the year the share price of the Company¡¦s share performed well thus enhancing the value for the shareholders of the Company.
Land Bank
The Group has successfully accumulated a valuable land bank representing a diversified portfolio of properties in selected cities in which we intend to focus on development activities.
Over the year through taking part in mainly acquisitions of equity interests and by other means of increasing our equity interests in projects the Group had increased its land bank by approximately 7 million sq.m. GFA an increase of 230% over last year.
The Group plans to expand its land bank to 15 million sq.m. GFA by this year end reflecting its very strong growth potential which ensures economics of scale and diversification. Beyond 2007 The Group¡¦s rate of land bank expansion will be at more sustainable levels with the Group planning to expand its land bank by 2 to 3 million sq.m. GFA each year such that it reaches 20 million sq.m. GFA by end of 2009.
In the expansion of the its land bank the Group is focused on tier 1 and fast growing tier 2 cities which offer good return potential.
As at the date of this announcement the Group has 11 projects under development in eight cities. These 11 projects have an aggregate site area of 5.4 million sq.m. and an aggregate GFA of approximately 10 million sq.m. or saleble GFA of approximately 9.2 million sq.m. including completed property developments with a total salesable GFA of 114786 sq.m. properties under development with a total planned salesable GFA of 1.9 million sq.m. and properties held for future development with a total planned GFA of 7.2 million sq.m..
Development Projects
The Group has focused on a mixture of developments ranging from residential complexes and serviced apartments to retail and office properties and high-end hotels. Only approximately one third of our properties are exclusively residential complexes whereas the remainder of our projects are a mixture of property types: three projects include hotels two include offices three have apartments and over half of our projects offer retail space. We believe that by diversifying our portfolio in this manner we reduce our dependence on any particular sector of the market as well as position ourself to take advantage of a greater variety of future opportunities as we build development expertise across a broad range of property types.
Neo-China Group (Holdings) Limited is an investment holding company engaged in property development in China. The Company develops quality residential and commercial properties mainly targeting middle-to-high income occupants in Mainland China. It has 11 projects under development in eight cities. It focuses on a mixture of developments, ranging from residential complexes and serviced apartments to retail and office properties and high-end hotels. The Company’s subsidiaries include Capital Team Investment Limited, DIVO Success Limited, Eastern Winway Limited, Joyful Fortune Limited, Lead Mix Limited, Leadway Pacific Limited, Lucky Merit Development Limited, Neo-China Property Limited, Phoenix Real Property Limited, Reliapoint Ltd, and Sunkit Development Limited. On February 28, 2007, the Company completed the acquisition of 67% equity interest in Hunan Qianshuiwan Shuangya. On February 28, 2007, the Company acquired 100% equity interest in Zhongzhu Jiazhan Real Estate.
+852-25448000 (Phone)
Quarterly
(Apr '07) Annual
(2007) Annual
(TTM)
Net Profit Margin 52.70% 29.43% 29.43%
Operating Margin 7.88% 23.19% 23.19%
EBITD Margin - 3.95% 23.31%
Return on Average Assets 7.08% 8.90% 8.90%
Return on Average Equity 21.22% 26.24% 26.24%
Employees 890
