Hi Big Fish, yes I have adjusted my figures with the new info flowing in.
Gross profit expected from resi: $1,070 psf - $918 psf (total cost psf of NSA) multiply by NSA of 161,500sf = $24.55m.
Gross profit from retail: $3,750psf (my estimate only) - $2,408 psf (total cost psf of NSA) multiply by NSA of 78,985 = $105.963m.
Total gross profit = $130.513m.
Net profit after tax = $107.021m or 16.4ct per share.
CES was not so greedy and lowered its original (as indicated to agts earlier)selling price for the retail units, resulting in good sales. The resi mkt is expectedly weak, so we will have to watch how CES moves the remainder units from hereon.
CES remains my favorite 2nd liner prop stock. Technically, the counter tends to move up around this time each year, ahead of full year earnings where it’s expected to dish out spicy dividends.
Just a quick update on sales at Junction 9 and 9 Residences: resi units about 40% sold and retail about 95% sold. Resi market's cooling off is apparent.
Based on my estimates, total revenue from the project is about $470m, out of which sales of about $345m have been achieved. In other words, about 73% of the project, in terms of total revenue, is sold.
This high % is due to the higher ASP of the retail component vs the resi, as well as the substantial 79,000 sf of NSA retail space.
One of the few undervalued property counters which have not moved much yet for this year, if RNAV continues to move higher, the stock will probably do so. My target price is 95c - 100c in next few years. Then, a breakout above 100c, but that will take much more time.
CEO indicated in recent AGM that he has intention to subscribe for all the warrants he owns to increase his stake in company, so you know his position about the value of the company.
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