Prosperity Minerals Share Discussion Threads

[dr contrarian] 21/5/2013 14:14

Celeritas - The property presales are continuing to do well, I think the sales have slowed simply because there are hardly any left to sell.

I reckon there is less than 98 to sell, as everyime the Company has updated shareholders on sales it was around 40 more than indicated on these sites, so I estimate around 58 of the original 649 left to sell.

Surely not long to wait now before the Company officially updates shareholders on the latest sales figures, last update was in November 12.

[celeritas] 21/5/2013 13:37

So that's circa £5m of sales in the last month. Fantastic going.
98 to sell now.

[celeritas] 21/5/2013 13:31

NetEase property reported on May 21 NetEase real estate reporter recently learned, Dongfang Wende Plaza now remaining 105-119 ㎡ three bedrooms, price 43000-47000 yuan / square meters, with decoration.

NetEase property data center statistics show that nearly a month Dongfang Wende Plaza sold a total of 11 residential units, closing an area of ​​1164 square meters, the average transaction price of 40,359 yuan / square meters. The project has 100 residential units unsold.

Dongfang Wende Plaza, Yuexiu District, a rare large-scale projects, product selection, comes with commercial facilities, and the most important concept of "culture and education, real estate, in addition to readable provincial level Wende primary school places, REF for the children of the owners Trees Thatched Cottage Classics degree

[celeritas] 21/5/2013 08:53

Thanks Dr. Rents and sales are way way better than expected. It only needs a fund manager or the herd to work this out, which they will at some point.

[topvest] 21/5/2013 08:36

Yes, on a P/E of about 2!

Lots of very cheap Chinese stocks around, all of which pay dividends - FTO, CAMK, NBU, PMHL and ACHL are my top 5!

[philjeans] 21/5/2013 08:28

Try NBU guys for a real sino bargain - excellent news today.

[dr contrarian] 20/5/2013 12:24

Celeritas, updated link should now work.

As well as the residential prices, of particlar importance to the Company is the retail rental prices which are way ahead of initial expectations and those used by Daniel Stewart to value the Company's properties.

(Rents close to development in Yuexiu, Guangzhou are currently 1,000 - 2,000 RMB per sqm per month) (Table 3). Initial valuations of the property assumed an average monthly rent of RMB200 per sqm.

[celeritas] 20/5/2013 12:17

Dr, that link isn't working

I've read that new home prices in Guangzhou have jumped 35% in the last year.

[dr contrarian] 20/5/2013 11:46

Just rereading the DTZ property survey for Guangzhou for Q4 2012, if anyone needs convincing about the strength of the property market in Guangzhou (Where the Company's main property development is located) take a look at the pdf link below

[celeritas] 20/5/2013 10:12

Recent information shows a sale for each of the last 5 days, avg for 5 properties is 43,567 per sqm.

[dr contrarian] 19/5/2013 20:20

Phil, just tweaked a few price assupmtions which has marginally changed the profit.

Either way if investors dig a little they will find there are some severely undervalued Chinese Companies out there PMHL, CAMK etc

[philjeans] 19/5/2013 18:54

Thanks Dr C; very encouraging!

A way to go here - keep buying.

After the figures are released, we need IC and Shares to set it all out like this to demonstrate the incredible hidden value and earnings here.

A profit of perhaps £94M (over the term of the development) against current M/C of £109m!!

[dr contrarian] 19/5/2013 17:50

The other property developments in Silverbay Plaza, Fujian and Hangzhou were valued at the investment cost of US$89.2 (38p per PMHL share)

Still valuing the other property developments at the investment cost but adjusting for disposals and the change in exchange rate gives current value of (47p per PMHL share)

[dr contrarian] 19/5/2013 16:41

Just going through an old report from 2nd Dec 2011 to try to get a more accurate estimate of the value of the main development in Guangzhou.

􀂄 Oriental Landmark is located in the Yuexiu district of Guangzhou a few minutes
walking distance from Beijing Road, a pedestrianised shopping street which is one
of Guangzhou's main shopping streets.

The development comprises:

􀂄 a proposed composite commercial, office and residential development with a site area of 13,814 sqm;
􀂄 a 5 storey commercial podium (one underground) with 31,472 sqm;
􀂄 a 3 storey underground car park with 759 spaces;

􀂄 on top of the podium, there will be:
􀂄 3 residential blocks with 35 floors and 1 residential block with 29 floors (total space 68,842 sqm),
􀂄 1 commercial building with 26 floors and 20,778 sqm, and
􀂄 the aggregate floor area will be approximately 165,519 sqm

Daniel Stewarts Valuation 2nd December 2011

􀂄 PMHL's cost of construction is estimated to be well within the RMB21,000 per sqm used in the last valuation, giving a substantial buffer.
􀂄 We value Oriental Landmark at US$254.1m. This assumes:
􀂄 an average sale price of RMB27,000 per sqm for Residential apartments, and
􀂄 for the Commercial part, an average monthly rent of RMB200 per sqm and a
rental yield of 6.5%.

Current Valuation Estimate

Pre-Sales prices started around RMB 31000 and are now around RMB 45000, therefore assuming a mean sales price of RMB 38,000.

The DTZ property survey for Guangzhou for Q4 2012 indicates that commercial rent has at the very least matched the increase in the residential prices (Rents close to development in Yuexiu, Guangzhou are currently 1,000 - 2,000 RMB per sqm per month) (Table 3).



The value is 254.1 * 38,000/27000 * Yuan/$ exchange rate adjustment 10.2/9.32

= US$391m = £258m (180p per PMHL share)

[che7win] 18/5/2013 11:09

Lovely chart formation here, any good news will see a quick move up due to the underlying value here IMHO.

I think there is a good chance of a special dividend this year as this company does from time to time.

[dr contrarian] 18/5/2013 09:38

Phil - It appears that many undervalued stocks do nothing for ages and then when the positive news feeds through to an announcement or results they can take off, didn't something like that happen to Cam Kids recently ?

[dr contrarian] 17/5/2013 17:25

The Yuan's continued appreciation against Sterling (around 7% since last year) has also helped to increase the value of our Chinese Assets.

[look alive] 17/5/2013 17:12

Yes, this could easily run to 100p vey quickly and still look chesp.

[dr contrarian] 17/5/2013 16:48

LA - Good to see you are still around, unfortunately Utterly Pointless chose to exit just before the move north.

Have held some of these for quite a while and finally the Company looks like its turning things around and with profits from the Company's property developments also on the horizon the outlook is looking brighter again.

[dr contrarian] 17/5/2013 16:31

Unusual amount of buying interest today, has this been tipped somewhere or have folks started to wake up to the fact that the Companys property assets are not worthless but will make the Company a mint.

[dr contrarian] 17/5/2013 16:16

For a long time this has been held back by an large overhang of shares, now that has been cleared the shares should rerate in time.

Judging from other shares the rerate could occur suddenly rather than gradually as most investors like to pile into undervalued shares at the same time.

[look alive] 17/5/2013 16:04

Thats my view.

[celeritas] 17/5/2013 15:51

phil, just keep buying, the rest will catch up soon enough. Maybe a nice meaty dividend will entice them.