China New Town -- Worth a Punt ?

Operations are running well • The relaxation of austerity measures, which included temporary exemption of the land appreciation tax could eventually lead to a revived property sector and attract developers’ interest once again. • Though details are not given, CNTD said that it will be concluding another parcel of land auction in Shanghai next month, and has talked to about 20 developers to date. • The group is confident that its various projects (in different provinces at different stages of development) will continued to generate decent gross profit margins between 45-50%. In addition, CNTD has also gradually built up its source of stable income streams through investments in golf courses, hotels, commercial and retail space operations, as well as hospitals and schools.

CIMB still call for a BUY but the TP has been reduced so drastically. • We slashed FY09 earnings quite drastically by 74% as we realign our assumptions by imputing the pushing back of income recognition schedule for various projects. Consequently, we upped our FY10 estimates by 81% to incorporate all future contribution of these rescheduled projects. • Reiterate Buy and target price reduced to S$0.05. Still pegged at 3.8x CY09 P/E, we derived a lower target price of S$0.05 (from S$0.17) due to earnings cut. Given a 33% upside from this level, we maintain our Buy rating. A better land auction outcome and the group’s successful refinancing activities would catalyses share performance.

Lelong Leong.... What wants a town developer for 3 cents ?? Any takers from Capitaland or Kepland ?? :silly: :silly:

Zaobao has an article yesterday on China New Town. The CEO is quoted as saying that the Company is trying to find financing for interest repayment in September. The amount is about RMB 100m. What if they cannot find the funding, then how? :dry: :dry:

From 3 cents to 7 cents. A double bagger in 2009. Puntamental stock! :laugh:

here is its recent news; SUCCESSFUL AUCTION UNDER THE LUODIAN PROJECT. this Puntamental stock has a high debt/equity ratio of approx 2 , which i am concern. so far, it managed to find way to finance or pull through. would you buy this stock???