CDL & CDI ... Another Great Result

[Vaygor1]

Thanks for your post Lizard. Much appreciated as always.

I have confidence in the board too. Perhaps I should have used the word trust; and despite my statement I do in fact trust them. Having resided/worked in Singapore for 3 years out of the last 8, and given the business sector I worked in, I had reasonable exposure to the Hong Leong Group and as such have no issue there at all.

Having said that, I do think the board of CDI and MCK need to continually counter the negative NZ perception of Asian ownership and a bit more transparency wouldn't hurt, and may even improve the stocks liquidity/public profile issue.

For instance, I wouldn't expect RYM to state they 'bought 4.1 hectares of land in Auckland' and leave it at that. Even if they couldn't name the exact location (ie for reasons of confidentially) then they would still give a better indication of the site's whereabouts and an approximation of how many units/beds they intend to convert from the purchase. They also declare amongst other things their future build-rate targets and an array of market data regarding the projected market size of their customer base. I can't find anything comparable coming from CDI.

Reading what I can from CDI's own figures, if the current number of sections sold per month doesn't drop, they will run out of saleable stock by this November.

As for the share price, roughly in my head (given the hour of this post), if CDI's full year result reflects only a 25% increase in EPS (and I expect at least that as H1 was up 42%) , then when I buy a share in CDI for $0.50 I am effectively purchasing the land they own for 1/2 price.

[pennyacw]

Does any one know where an AGM presentation or meeting minutes are provided. I have had a look on NZX, but they have very poor facilities on historical content.

CDI look attractive in terms of financial metric, however, like Vaygor has decribed it is the qualitative content that really lets them down, which has held me off from investing. They have great ROIC as a business, but very little information on how they achieve this.

Another concern I have is the high shareholding of MCK. Can we trust that the CEO and MCK's interest are aligned with a regular investor like myself, or will they simply issue higher dividends when MCK need a bit of cash etc.

Anyway, not trying to downgrade how good this company looks, but the limited information they provide to investors is a tad frustrating.

[Vaygor1]

Does any one know where an AGM presentation or meeting minutes are provided. I have had a look on NZX, but they have very poor facilities on historical content.

CDI look attractive in terms of financial metric, however, like Vaygor has decribed it is the qualitative content that really lets them down, which has held me off from investing. They have great ROIC as a business, but very little information on how they achieve this.

Another concern I have is the high shareholding of MCK. Can we trust that the CEO and MCK's interest are aligned with a regular investor like myself, or will they simply issue higher dividends when MCK need a bit of cash etc.

Anyway, not trying to downgrade how good this company looks, but the limited information they provide to investors is a tad frustrating.

I can't find anything on CDI's AGM presentation material or MOMs either. I wish there was something readily available for all shareholders. With a lack of info out there I can't help but feel that MCK hold a distinct advantage over the rest of us plebs.

Their full year result (announced mid-February) disappointed me given where they sat at H1. But on the over all scheme of things, it was still a good result showing reasonable growth.

That being said, I dare say that this company (or at least its shareprice) looks like it might be FINALLY starting to get some well-deserved recognition... Share price has moved up to 61 cents with a fairly constant amount of sustained upward pressure at reasonable volumes. Still at least a 25% discount on a fair Shareprice given their balance sheet, cash position, and profitability imho.

Disc: Still holding.

[DarkHorse]

Thanks for the helpful info fool

[Vaygor1]

Cdi only produce residential sections. This is not a company developing retirement villages, so Units/beds reporting is not going to happen.

Hi Greater Fool and thanks very much for the link to the ASM Presentation. Much appreciated.

You may need to re-read my post re beds/units but this was referring to Ryman Healthcare (RYM) which I used only to serve as an example of reporting on timeframe to convert. For CDI I know this is residential developments but I still think they could provide a bit more information on the anticipated cost and time period to convert each development into xx units of saleable sections.

I think the graph in CDI's ASM presentation on net NZ migration figures is a useful indication of demand for their future/ongoing developments so I am pleased to see this in there.

Disc: Still holding.

[BlackPeter]

Anybody still following this stock?

SP currently somewhat soft (on very low volume) ... and passed the famous cross of death in early December. On the other hand: real estate is still quite tight (and likely to stay so for years to come); They recently started to sell the first stage of their new Christchurch development (Preston) and their Rolleston sales seemed to have gone pretty well.

As well - their SP had last year a great spike after the release of the annuals ...

So - the question is: will they surprise the market in February with another good annual result or is the real estate party over for the next couple of years?

Views?

Discl: holding (a wee package - bit concerned about the liquidity to buy much more ...)

[Vaygor1]

Anybody still following this stock?

SP currently somewhat soft (on very low volume) ... and passed the famous cross of death in early December. On the other hand: real estate is still quite tight (and likely to stay so for years to come); They recently started to sell the first stage of their new Christchurch development (Preston) and their Rolleston sales seemed to have gone pretty well.

As well - their SP had last year a great spike after the release of the annuals ...

So - the question is: Will they surprise the market in February with another good annual result or is the real estate party over for the next couple of years?

Views?

Discl: holding (a wee package - bit concerned about the liquidity to buy much more ...)

I share your concern regarding liquidity, and see it being low due to 1,2, or all 3 of the following reasons:
* They have such a low public/NZX profile
* They entered the NZX through the back door
* Negative perception of MCK, their cornerstone shareholder - ultimately Asian owned/influenced.

It is good to see they have lifted their game in forecasting and information sharing but still some further improvement needed here imho.

I hope they surprise the 'market' with another great result in February (or a revised upward guidance before then) and I think there is a reasonable chance this may occur. I put the word market in inverted commas because for this stock, it still seems to be small… hence the liquidity problem.

Given the time required to convert newly acquired land into saleable residential developments, I don't see 2-3 year property cycles impacting their real performance anywhere near as much the market perception the same has on the SP.

Based on my homework on CDI around August last year, I concluded CDI were worth circa $0.75/share (assuming reasonable NZX buy/sell liquidity) and since then their results have only improved.

Disc: Still own a sizeable holding. Have not bought or sold any for a long a time.

[Vaygor1]

And another great result. This released on Friday just gone...

FLLYR: CDI: CDI: 2015 Results Announcement

CDI
19/02/2016 15:20
FLLYR
PRICE SENSITIVE
REL: 1520 HRS CDL Investments New Zealand Limited

FLLYR: CDI: CDI: 2015 Results Announcement

CDI releases its audited financial statements for the year ended 31 December
2015 together with its Directors' Review and Press Release, the text of which
follows below:

DIRECTORS' REVIEW

Financial Performance

CDL Investments New Zealand Limited ("CDLI") is pleased to report a profit
after tax of $17.5 million for the year ended 31 December 2015, an increase
of 18.8% from the previous year (2014: $14.7 million). This result is the
sixth consecutive year of profit growth and a record profit for the company.

Profit before tax also increased to $24.2 million (2014: $20.5 million).
Property sales & other income totaled $47.6 million (2014: $44.2 million)
with the number of sections sold in 2015 at 255 (2014: 248).

Shareholders' funds as at 31 December 2015 increased to $140.3 million (2014:
$128.5 million) and the Company's total assets stood at $142.7 million (2014:
$130.5 million). The net tangible asset per share (at book value) was 50.8
cents (2014: 46.6 cents).

Dividend Announcement

Reflecting the continued level of profitability, the Company has resolved to
maintain its fully imputed ordinary dividend at 2.2 cents per share payable
on 20 May 2016. The record date will be 6 May 2016. The Dividend
Reinvestment Plan will apply to this dividend.

Land portfolio

At 31 December 2015, the independent market value of CDLI's land holdings was
$265.0 million (2014: $206.0 million). CDLI's accounting policies require
the company to carry the value of its land portfolio at the lower of cost or
net realisable value and at 31 December 2015, the land portfolio at cost was
$126.6 million (2014:$ 97.0 million).

CDLI acquired a further 4.1 hectares of land in Auckland during the year.

Summary and Outlook

Strong customer demand for high quality residential sections continue to
underpin CDLI's results and this is being reflected in both increased revenue
and profitability. The Board and Management are therefore focused on growth
as well as meeting future demand expectations with supply in a sustainable
and sensible way. With sales having commenced at Prestons Road, Christchurch
and Greville Road, Auckland, 2016 should prove to be another profitable year.

Management and staff

On behalf of the Board, I thank the Company's management and staff for their
hard work during 2015 to deliver this outstanding result.

Wong Hong Ren
Chairman
19 February 2016

**MEDIA RELEASE**

CDL INVESTMENTS NEW ZEALAND REPORTS RECORD PROFIT FOR 2015

Property development company CDL Investments New Zealand Limited (NZX: CDI)
today reported its results for the year ended 31 December 2015.

CDI increased its profit after tax by 18.8% to $17.5 million with property
sales & other income increasing by 7.8% to $47.6 million over the previous
twelve months.

"It is very pleasing to report a sixth consecutive year of increased
profitability and even more pleasing to report a record profit," said
Managing Director Mr. B K Chiu. "The result is underpinned by continued
strong demand for residential sections and we believe that this level of
demand will continue through 2016".

CDI's geographically diverse land portfolio was independently valued at
$265.0 million at 31 December 2015 and the company also acquired an
additional 4.1 hectares of land in Auckland during the year.

CDI's Board resolved to maintain its dividend at 2.2 cents per share fully
imputed which would be paid to shareholders on 20 May 2016. The Record Date
would be 6 May 2016 and the Dividend Reinvestment Plan would apply to this
dividend.

With regard to 2016, Mr. Chiu said that CDI would be focused on growth as
well as meeting future demand expectations with supply in a sustainable and
sensible way.

"We have commenced sales at our Prestons Park (Christchurch) and Greville
Road (Auckland) subdivisions and these, together with sales from our other
developments, should ensure that 2016 will be another profitable year", he
said.

Summary of results:

--Profit after tax = $17.5 million (2014: $14.7 million)
--Total revenue & other income = $47.6 million (2014: $44.2 million)
--Shareholders' funds = $140.3 million (2014: $128.5 million)
--Total assets = $142.7 million (2014: $130.5 million)
--Nnet tangible asset value (at book value)= 50.8 cents per share
(2014:46.6cps)
--Earnings per share = 6.33 cents per share (2014:5.35cps)

About CDL Investments New Zealand Limited:
CDL Investments New Zealand Limited (CDI) has a proud track record of
acquiring and developing residential sections in New Zealand for two decades.
With a focus on creating and developing a range of high-quality residential
sections to New Zealanders, CDI has over the past twenty years successfully
completed numerous subdivision projects in Auckland, Hamilton, Tauranga,
Hastings, Havelock North, Taupo, Nelson, Christchurch, Rolleston (Canterbury)
and Queenstown. CDI is a majority-owned subsidiary of NZX-listed Millennium &
Copthorne Hotels New Zealand Limited.

ENDS

Issued by CDL Investments New Zealand Limited

Enquiries to:
B K Chiu, Managing Director
(09) 353 5058
End CA:00277999 For:CDI Type:FLLYR Time:2016-02-19 15:20:58

[blackcap]

I saw that on Friday and thought... well done, very nice way to end the year. Could have increased the dividend to 2.4 cents or even 2.5 I thought just to sweeten the deal but all in all very happy. Not sure if the SP is going to go anywhere though... seems to be stuck between 58 and 62 for eons now

[BlackPeter]

Have to agree. Land portfolio worth $265 million. Market cap (at 62 cents) $171 million. Gives you the land with discount and the company for free.

Great performance, great value - accumulated a handful more over the last 3 days ...