CDi - Land Investments

[Gordon]

I've been watching this company for a few months now and decide to dive in and bought some shares at 36 cents. They reported the net realisable NTA of 53.8 cents, gives a 2 cent div, no debt, $10 million cash reserve and made over $8.477m full yr profit.

The question is, why is it trading at 38 cents, 42% delow its nta of 53.8 cents?


Disclosure: I am a shareholder

[Paper Tiger]

Welcome Gordon

That is as mysterious as how you work out that 38c is 58% of 53.8c.

Many factors affect share price, a 2c divvy on a 38c share is about 7.8% return (I assume full imputation credits) which is probably the driver for the price. The chances of this company selling up to realise its assets are nil at the moment.

[Gordon]

Even if they dont sell, it is trading at a huge discount to the NTA, assuming the NTA is correct. Also, the property market is still very healthy.

the whole sharemarket is a mystery to me. I make more money on my residential property of late.

[Bling_Bling]

quote:Originally posted by Paper Tiger

The chances of this company selling up to realise its assets are nil at the moment.


I am interested to hear why you think there is no chance this company will get taken over. I would assume everything has a price.

[kiwikauri]

CDI - A bit of background on this company - It used to be Kupe Oil, changed its name to Apex - and I think it took over CFM and was an investment company in the 80's.

Asian investors went in early 90's (via CDL Hotels) and own majority of shares.

Has a DRP and only pays an annual divvy - if at all.

Most recent announcement stated it had replenished its land bank and had 245ha of land at balance date.

There was a large revaluation done by DTZ NZ of the properties from 63m to 107m - which would account for a good chunk of the NTA.

I will post lastest annual result shortly.

Well hopefully my memory has served me well.

[kiwikauri]

CDL Investments New Zealand Limited CDI 18 Feb, 2005, 09:14 FLLYR FY to 31/12/2004 $8.477m ($6.595m) +28.5%
Full Text of Announcement
Please note that this announcement replaces the previously released preliminary results for CDL Investments New Zealand Limited, which was incorrectly released as a Half Year Preliminary result announcement.

FY to 31/12/2004 $8.477m ($6.595m) +28.5%

LISTED ISSUER: CDL Investments New Zealand Limited

CONSOLIDATED OPERATING STATEMENT FOR THE FULL YEAR ENDED 31/12/2004

Audited NZ$'000

Current Period; (Previous Corresponding Period)

OPERATING REVENUE

Trading revenue 19,746; 26,892
Other revenue 404; 325
Total Operating Revenue 20,150; 27,217

OPERATING SURPLUS (DEFICIT) BEFORE TAXATION 12,021; 9,987

Less taxation on operating profit 3,544; 3,392

OPERATING SURPLUS (DEFICIT) AFTER TAX 8,477;
6,595
Extraordinary items after tax -; -

Unrealised net change in value of investment properties -; -

NET SURPLUS (DEFICIT) FOR THE PERIOD 8,477; 6,595

Net Surplus (Deficit) attributable to minority interests -; -

NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS OF THE LISTED ISSUER 8,477; 6,595

EPS 4.23cps 3.36cps



CDL INVESTMENTS NEW ZEALAND LIMITED PROFIT JUMPS 28.5%


Property development and investment company CDL Investments New Zealand Limited (CDLI) today reported a 28.5% jump in net profit after tax to $8,477,000 for the year ended 31 December 2004.

Managing Director Mr Tsang Jat Meng, said that, despite a fall in revenue, this was a very pleasing performance from the 61.48% owned subsidiary of CDL Hotels New Zealand Limited.

"The New Zealand property market remained buoyant during 2004 and we were able to capitalise on this," he said.

Noting that CDLI has a property portfolio that stretches from Auckland in the North Island to Queenstown in the South Island, Mr. Tsang said that the Company had had the benefit of favourable market conditions across its entire property portfolio.

"A feature of our result is the significant increase in the value of our property portfolio from $63,070,000 to $107,805,000. So we have been able to sell profitably and at the same time buy well".

Executive Director John Lindsay said that the Company would continue to look for appropriate acquisitions to boost future earnings.

Mr. Tsang said that CDL Investments New Zealand Limited has come a long way since 1993 when CDL Hotels New Zealand bought its cornerstone stake. "CDLI is a focused property and investment company. It is positioned well and we believe it will continue to perform strongly during 2005".



CHAIRMAN'S REVIEW


Financial Performance

CDL Investments New Zealand Limited ("CDLI"), a 61.13% owned subsidiary of CDL Hotels New Zealand Limited, reported a 28.5% increase in net profit after tax to $8,477,000 for the year ended 31 December 2004. This compares to $6,595,000 in the 2003 calendar year.

The strong uplift in profit was despite a fall in revenue from $27,217,000 in the 2003 year to $20,150,000 in the year under review. While sales volume was down due to a lack of available stock because of adverse weather conditions, the company experienced a significant rise in its gross margin (up 8.3% on the previous year) as it capitalised on the strength of the overall market as well as the quality of its property portfolio.


Financial Information

Shareholders' funds as at 31 December 2004 totalled $56,938,000 with total assets at $58,749,000. Net asset backing (before distributions) as at 31 December 2004, was 28.4 cents per share compared to 25.7 cents per share in the previous year. Earnings per share, was 4.23 cents compared to 3.36 cents in the previous year.

CDLI has no debt on its balance sheet and it has cash reserves of $9,820,000 as at 31 December 2004.


Operations

Market conditions throughout 2004 were a continuation from the previous year where the housing property market experienced a strong cyclical upswing with housing sales and new housing construction both bei

[Bling_Bling]

This looks like an interesting little company. May keep an eye on it. Looks undervalued at this level, especially with a nice 2 cents div.

Anyone know where CDi land are located?

[Paper Tiger]

Next to CD-R and CD-RW lands but well south of DVD land. :D

BB True, most companies are available from their owners for the right price (I have a few if you want to buy one), but the right price for the sellers may never be the right price for any buyer. I believe this to one such case.

[Gordon]

Paper Tiger, are you saying that the owner of CDi is asking too much for the company and that the buyers are not prepare to pay that price? What price do you think CDi is worth?

[Paper Tiger]

Gordon. Here is a link to another thread on CDI (http://www.sharetrader.co.nz/topic.asp?TOPIC_ID=21296).

[Gordon]

Well, this company looks cheap to me. Maybe even buy more shares if it comes down. Ivesting in CDi is like investing in the residential property market without much risk of leveraging since the company has no borrowing. If the property market falls, it is an opportunity for CDi to accummulated more land and if the property market goes up, they will benefit from the 245ha of residential land they already have. If the property market stays flat, then CDi will continue to make good margins on the land and pay good a div.

[Steve]

quote:Originally posted by Paper Tiger

Next to CD-R and CD-RW lands but well south of DVD land. :D

LOL! That's the funniest thing I have read in this CDI thread.[:p]