Saturday 27 April 2013

YNH Property Bhd

Attractiveness of YNH:

Enjoy high EBITDA margin due to relatively low land costs, in-house construction arm to capture construction margin

Dominant market position in Manjung District, largest undeveloped land bank of 1,000 acres. No significant competition, with significant market share

Menara YNH sits on 3 acres of land. GDV approximately 2.1b. Approved development order had already been obtained for this development, comprising officer tower and shopping mall. The group has intention to keep 50% of the Menara YNH as investment property and it will be used as the Group's future corporate headquarter

AEON Shopping Centre at Seri Manjung is built on a 30.2 acres of land at Pusat Perniagaan Manjung Point. The construction of AEON Shopping Centre was completed in December 2012. Gross development costs approximately RM135.1m. The group has also commenced the construction of Pantai Specialist Center at Seri Manjung within gross development costs budget of RM51m. These will enhance the value of the balance 1000 acres of undeveloped landbanks in the Manjung Point Township

The Company had also in 4Q08 acquired 95 acres of strategic development land bank in Genting Highlands. It is located strategically next to Genting Highland Resort and was acquired for RM16.05m. The land has already been converted to building title. The proposed development comprises commercial, bungalows, condominium, retail and etc for both local and foreign investors. Estimated GDV RM1.96b. Land cost <1% of GDP!

Several institutional investors in the list of top 30 largest shareholders


Overly optimistic? What were the reasons for the reductions in estimated GDV for various developments shown in 4Q12 notes to the interim financial statements as compared to 2011 annual report:

  • Fraser Residence: from RM750m to RM530m
  • Menara YNH: from RM2.3b to RM2.1b
  • Kiara 163: from 1.2b to RM1.0b

Is the remuneration for directors high?
Revenue: RM214.09m
Net profit: RM44.29
Total remuneration for directors: RM12.78m (2 executive directors, 3 non-executive directors)
% of net profit: 28.86%
Total for executive directors: RM12.33m
% of net profit: 27.84%

Net profit: RM52.33
Total remuneration for directors: RM12.58m (2 executive directors, 3 non-executive directors)
% of net profit: 24.04%
Total for executive directors: RM12.02m
% of net profit: 22.97%

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