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3 Things To Know About Chiwayland
Corporate Digest | 07 October 2014
By: Louis Kent Lee
Articles (199) Profile

Chiwayland International Limited (Chiwayland), a Chinese developer listed on the Singapore exchange might be unknown to many investors out there. It is not entirely surprising because (a) it’s an S-chip, and (b) investors are somewhat apprehensive when it comes to property plays they’re not familiar with.

Chiwayland has successfully completed its reverse takeover of RH Energy in August this year.

Let us take you through what we have gathered about this company, and highlight 3 key takeaways you should know about the company.

Top 100 Real Estate Development Enterprise Accolade

There are many property developers in China. But not many are given the recognition of being one of the top 100 property developers in China. Competition is brutal, and it helps if you have done things well enough to reflect a track record.

Since 2002, Chiwayland has delivered 9 completed projects successfully, and has earned a proven track record of property development in Yangtze River Delta’s belt. This translates to some 1.4 million square metres Gross Floor Area done till date by Chiwayland.

It is interesting to directly target the Yangtze River Delta strip as that region alone accounted for over 20 percent of China’s total GDP in 2013.

The company’s management also revealed that they will be following manufacturing activity, as such activities are moving away from the greater Shanghai area, and added that they will evaluate development opportunities in the Tier 2 or Tier 3 cities (Chow Tai Fook is also looking at Tier 3 cities, thus suggesting growth opportunities as well).

Diversified Portfolio and Profitability

Looking at Chiwayland’s current existing portfolio, you’d have noticed the projects that are ongoing are categorised under 6 main blocks of property categories.

Source: Company

Essentially, Chiwayland’s exposure in China’s public housing projects, specifically under its fixed price housing property category, is a potential area which could see steady revenue generated in time to come.

Source: Company

Shifting the attention to its numbers, the CAGR of 6.4 percent over the past three years suggest the steady revenue generation from its projects, and the profitability seen from metrics like ROE and ROA points to good profits ability of the company as a result of revenue prowess.

Net profit has also garnered a commendable 10 percent CAGR over the past three years.

Education Element, Overseas Footprints And Good Pipeline

Chiwayland’s involvement in the education business, such as being joint venture partners with EtonHouse Group and Jiangsu Shagang Group also brings across an important point to note when bidding for land projects in China.

Depending on what the project built on the land is for, having an educational element within the development, which is highly favoured by the Chinese government could give Chiwayland the edge it needs to be awarded the land space in the first place.

Also, Chiwayland’s 50:50 JV in Australia with Brisbane-based Property Solutions to develop three property projects in Nundah and Toowong areas in Brisbane also marks the first foray of Chiwayland outside China.

The properties are scheduled for completion within a timeline between the fourth quarter of 2015 to the second quarter of 2017.

As of current, Chiwayland has a strong pipeline of diversified and well located properties as seen from table 1 above. On a consolidated basis, these properties are sitting on an aggregate Gross Floor Area of some 2.1 million square meters.

Louis is a qualified accountant with the ACCA, and is the Research Editor at Shares Investment magazine.

Please click here for more information about this author.

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