Xinyuan Science & Technology (NEEQ:870929) coverage initiated by Shanxi Securities

Xinyuan Real Estate's property management business, Xinyuan Science & Technology (XST), was approved for listing on China's National Equities Exchange and Quotations (NEEQ) "New Third Board" in March (LINK).  Broker coverage is a strong signal that a public offering of shares by  is planned.  Benefits of an offering to Xinyuan Real Estate (XRE) would be: … Continue reading Xinyuan Science & Technology (NEEQ:870929) coverage initiated by Shanxi Securities

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Xinyuan 3Q17 Contract Sales Estimate from CRIC

China Real Estate Information Corporation (CRIC – a subsidiary of E-House) released estimated 9M17 sales data for the country’s top 100 property developers (LINK).  Xinyuan China is shown at #75 with estimated sales of 15.8Bn RMB year-to-date, which means 6.56Bn RMB for 3Q. CRIC does not have access to any official company records and compiles … Continue reading Xinyuan 3Q17 Contract Sales Estimate from CRIC

ZhongAn Insurance IPO Draws Attention to Low Valuation of Fanhua

ZhongAn has just completed an IPO and the money-losing company closed ts first day of trading with a market cap of US$12Bn, 4.9X book value. ZhongAn's revenues are almost entirely from online sales of non-traditional products (e.g. Shipping Return insurance) and novelty products (e.g. Phone Screen Crack insurance) Fanhua acts as an agent for sales … Continue reading ZhongAn Insurance IPO Draws Attention to Low Valuation of Fanhua

Mid-Year Letter from Ronnie Chan of Hang Lung Group

Hong Kong real estate tycoon Ronnie Chan of Hang Lung Group has a reputation for writing insightful shareholder letters.  His latest is available on pages 2-16 of his company’s 2017 Interim Report.  A bit of background about Hang Lung: Reputation for very long-term outlook.  The company completed its Harbourside luxury apartment tower in Hong Kong in 2004 and held … Continue reading Mid-Year Letter from Ronnie Chan of Hang Lung Group

Colony Northstar Is Becoming Simpler And More Valuable

Near-term earnings are a bit weaker than expected and it will take years to realize the expected benefits of the merger The stock trades at one of the lowest valuations in the sector because the balance sheet and income statement remain difficult to analyze The market may have overlooked the benefits of the recently announced … Continue reading Colony Northstar Is Becoming Simpler And More Valuable

August NBS Price Data in Leading Chinese Cities With Home Price Restrictions

China’s National Bureau of Statistics (NBS) released its monthly report on home sale prices (LINK).  The report provides less coverage and less detail than the private Fang/Soufun 100 city index whose release has been suspended.  Increased government control over price data seems to be an intangible measure to cool speculation. The NBS report still provides some … Continue reading August NBS Price Data in Leading Chinese Cities With Home Price Restrictions

China XD Plastics Midyear Update and No News is Good News Regarding the Unfair Buyout Offer

China XD Plastics (CXDC) recently reported 2Q17 operating results and progress on major strategic initiatives: 1H17 net income of $38mm ($0.58/share) and reaffirmed full-year guidance 81% of 1H17 revenues from premium products and rapid sales growth in areas served by the new Nanchong plant Major growth initiatives underway in Nanchong, Harbin, and Dubai with strong … Continue reading China XD Plastics Midyear Update and No News is Good News Regarding the Unfair Buyout Offer

Xinyuan Real Estate: Record 2Q Sales Balanced by High Interest & Tax

Highlights from Xinyuan's recently reported 2Q17 results and Conference Call Record quarterly contract sales of $732mm SG&A expense declined to 9.9% of revenue (vs 11.4% for FY16) Unusually high interest expense of $20.2mm Effective tax rate of 56% Book Value rose to $14.13/ADS Conservative land acquisition budget of 5-7Bn RMB No full-year financial guidance Achieved … Continue reading Xinyuan Real Estate: Record 2Q Sales Balanced by High Interest & Tax

July NBS Price Data in Leading Chinese Cities With Home Price Restrictions

China’s National Bureau of Statistics (NBS) released its monthly report on home sale prices (LINK).  The report provides less coverage and less detail than the private Fang/Soufun 100 city index whose release has been suspended.  Increased government control over price data seems to be an intangible measure to cool speculation. The NBS report still provides some … Continue reading July NBS Price Data in Leading Chinese Cities With Home Price Restrictions

Ossen Innovation Acquisition Target Valued at $40.6mm in March, Equals $1.37/ADS

In conjunction with sale of its steel business to its Chairman for $0, Ossen proposes to acquire America-Asia Diabetes research Foundation (AADRF or San Meditech).  A March 2017 private placement by AADRF provides a realistic benchmark for the fair value of the business (source Ossen proxy page 202). Proceeds of $6,000,000 were received from sale … Continue reading Ossen Innovation Acquisition Target Valued at $40.6mm in March, Equals $1.37/ADS