Pharmacie sans ordonnance livraison rapide 24h: acheter viagra en ligne en France.
Microsoft word - ipo-modern land.doc
9/F, 10 Des Voeux Road Central, Hong Kong.
Dealing: 2308 8200 Research: 3608 8096 Facsimile: 3608 6113
HONG KONG RESEARCH
Analyst: Carmen Wong
28th June 2013
Main Board Listing – Research
Modern Land (China) Co., Limited (01107)
Joint Global Coordinators
Principally focusing in property development projects in China
Total share offer: 400,000,000*
Business of Modern Land (China) Co.,
(25.0% of the enlarged share capital)
Limited (“Modern Land” or the “Group”)
Public Offer: 40,000,000
Modern Land principally focuses on property
development projects with the adoption of
energy-saving technologies in China. Its
property projects are mainly located in Beijing,
* All 400,000,000 shares are New Shares
Taiyuan, Changsha, Nanchang, Jiujiang and Xiantao.
HK$1.49 – HK$2.36 per share
“MOMA” for the development projects. At
present, Modern Land has 3 product lines,
Pro-forma fully diluted historical 2012 P/E:
Pin Ge MOMA and iii) Man Ting Chun MOMA.
Adjusted NTA per share:
Projects which belong to “Wan Guo Cheng
495 (as of 31st December 2012)
MOMA” product line have applied and have a higher degree of application of its most
HK Public Offer period:
followed by “Shang Pin Ge MOMA” and “Man Ting Chun MOMA” products.
As of 31st March 2013, the Group had a total
of 14 property development projects. Land
reserves which comprise of projects currently
12th July 2013
under development amounted to a total gross
floor area (GFA) of approximately 2,234,741 square meters.
This report has been prepared solely for information purposes and we, East Asia Securities Company Limited are not soliciting any action based upon it. Neither this document nor its contents shall be construed as an offer, invitation, advertisement, inducement or representation of any kind or form whatsoever. This document is based upon information, which we consider reliable, but accuracy and completeness are not guaranteed. Opinions expressed herein are subject to change without notice. At the time of preparing this report, we have no position in securities of the company or companies mentioned herein, while other Bank of East Asia Group companies may from time to time have interests in securities of the company or companies mentioned herein.
Shareholders after Listing
(Assuming the over-allotment option is not exercised)
Super Land (BVI) – wholly owned by a family trust whereby the beneficiaries are Mr. Zhang Lei, the Executive Director and Chairman of the Group, and his family members
Dragon Shing (BVI) – wholly owned by Mr. Chen Yin, the Executive Director of the Group
Mel Creation (BVI) – wholly owned by Mr. Li Jing, a member of the senior management team of the Group
Zhou Ming (BVI) – wholly owned by Mr. Zhang Peng, a member of the senior management team of the Group
Create Success (BVI) – wholly owned by Mr. Fan Qingguo, the Executive Director of the Group
Ocean Ray (BVI) – wholly owned by Mr. Han Fengguo, an independent third party
Use of Proceeds
Net proceeds from the offer are estimated to be HK$716.3 million (based on the mid-point of the indicative Offer Price of HK$1.93 and assuming the over-allotment option is not exercised)
To acquire new parcels of land and the development of new projects in the PRC
For working capital and general corporate purposes
Year ended 31 December
2010 2011 2012
Breakdown of revenue by business activities
Year ended 31 December
1,548 100.0% 3,153 100.0% 1,965 100.0%
Peer valuation comparison
Market Cap (HK$ million) Net Debt to Equity Ratio
Modern Land (China)
( ): Based on the mid-point of the Offer Price range (HK$1.62)
Modern Land differentiates itself from other developers on its outstanding research and development
capability to incorporate energy-saving technologies to property development. The Group provides a wide variety of modules such as the installation of exterior walling system, displacement ventilation system and sun protection glazing etc, to meet different weather conditions, environments and customers’ needs. Its properties with the adoption of environmentally friendly technologies may see solid demand, on the back of increasing awareness for environmental protection.
Riding on its recognition in Beijing, the Group has expanded its operations to other provinces including
Shanxi, Hunan, Jiangxi and Hubei. Besides, Modern Land also considers to expand its business to the US, as the application of eco-friendly technologies in housing projects have been well received by the US market and also the Group has been awarded a few recognitions by various US institutes including LEED (Leadership in Energy and Environmental Design). Expansion to the US may help the Group diversify its businesses from the geographical perspective. In December 2012, Modern Land purchased a parcel of land with a site area of approximately 196,155 square meters in Texas, the US, which is intended for residential project development.
Average new home prices in 70 major cities in China rose 0.9% month-on-month or 6% year-on-year
in May. In Beijing, new home prices in May even jumped 11.8% from a year earlier, compared with April’s year-on-year increase of 10.3%. In light of surging property prices in China, the Chinese government is unlikely to relax its tightening measures anytime soon which may dampen the property sales, especially the luxury housing segment.
Modern Land’s gross profit margin may fall in the coming 2 to 3 years. During the track record period,
its revenue relied on its high-end property projects – “Wan Guo Cheng MOMA” product line. However, its projects currently under development are mainly belong to “Man Ting Chun MOMA” product line, which target mass-market and have relatively lower gross profit margins as compared to its “Wan Guo Cheng MOMA” product line.
In accordance with market practice, mortgage banks usually require the Group to guarantee its
customers’ mortgage loans. As of 31st December 2010, 2011 and 2012, its outstanding guarantees for mortgage loans amounted to approximately RMB1,427.0 million, RMB1,229.6 million and RMB1,434.7 million, respectively. If there is any material default by its customers on such loans, the Group may be required to honour its guarantees and its results of operations and financial position may be adversely affected.
Valuation-wise, shares of Modern Land are offering at 5.5x 2012 P/E, which is not compelling
compared with its peers’ average of 4.7x. In view of policy headwinds and expected fall in gross profit margin, we do not recommend to subscribe for Modern Land.
Recommendation: Not Subscribe
Important Disclosure / Analyst Certification / Disclaimer
This report is published by East Asia Securities Company Limited, a wholly-owned subsidiary of The
Bank of East Asia, Limited (“BEA”).
Each research analyst primarily responsible for the content of this report (whether in part or in whole)
certifies that (i) the views on the companies and securities mentioned in this report accurately reflect
his/her personal views; and (ii) no part of his/her compensation was, is, or will be, directly, or
indirectly, related to specific recommendations or views expressed in this report.
This report has been prepared solely for information purposes and has no intention whatsoever to
solicit any action based upon it. Neither this report nor its contents shall be construed as an offer,
invitation, advertisement, inducement or representation of any kind or form whatsoever. This report is
based upon information, which East Asia Securities Company Limited considers reliable, but
accuracy or completeness is not guaranteed. The analysis or opinions expressed in this report only
reflect the views of the relevant analyst as at the date of the release of this report which are subject to
change without notice. Any recommendation contained in this report does not have regard to the
specific investment objectives, financial situation and the particular needs of any specific recipient.
This report should not be regarded by recipients as a substitute for the exercise of their own
judgment. Investments involve risks and investors should exercise prudence in making their
investment decisions and obtain separate legal or financial advice, if necessary. East Asia Securities
Company Limited and / or The Bank of East Asia Group accepts no liability whatsoever for any direct
or consequential loss arising from any use of or reliance on this report or further communication given
in relation to this report.
At the time of preparing this report, East Asia Securities Company Limited has no position in
securities of the company or companies mentioned herein, while BEA along with its
affiliates/associates and/or persons associated with any of them may from time to time have interests
in the securities mentioned in this report. BEA and its affiliates/associates, their directors, and/or
employees may have positions in, and may effect transactions in securities mentioned herein and
may also perform or seek to perform broking, investment banking and other banking services for
BEA and/or any of its affiliates/associates may beneficially own a total of 1% or more of any class of
common equity securities of the company or companies mentioned in this report and may, within the
past 12 months, have received compensation and/or within the next 3 months seek to obtain
compensation for investment banking services from the company or companies mentioned in the
This report is not directed to, or intended for distribution to or use by, any person or entity who is a
citizen or resident of, or located in, any locality, state, country or other jurisdiction, publication,
availability or use would be contrary to law and regulation.
Nicotine replacements products help relieve some of the withdrawal symptoms people experience when they quit smoking. There are several nicotine replacement products currently available over-the-counter in the United States, including two nicotine patches, nicotine gum and nicotine lozenges. A nicotine nasal spray, inhaler (Zyban) and the recently approved nicotine-free tablet (Chantix) are
CAPÍTULO III. ACTOS DE COMERCIO* I. SISTEMA Y ALCANCE DEL ART. 8. 1. Generalidades. — Señalamos la evolución actual de la dogmática acerca del contenido del dere- cho comercial y la tendencia apuntada en la legislación patria. Asimismo indicamos el origen y auge de los actos de comercio y su amplia recepción en el derecho continental. Mas la sanción del Código Civil itali