Business

UBS estimates that Shimao Group will have a total of US$4.4 billion in domestic and foreign bonds and loans due next year

Investment bank UBS issued a report estimated that the Chinese real estate company Shimao Group 0813.HK , which is of concern for liquidity, will have about 2.5 billion yuan in domestic bonds due in January next year, and there will be some in April. 700 million US dollars of offshore bonds matured. The bank estimates that the company will mature US$4.4 billion worth of domestic and overseas bonds and overseas syndicated loans in 2022.

UBS said that the total debt of US$4.4 billion does not include RMB 120 billion of off-balance sheet debt.

The report pointed out that the maturity of Shimao Group’s bonds in January next year will be a key event worthy of attention. If the group fails to repay the loan as scheduled, it is believed to have a negative impact on the mainland housing sector, because it was the top 10 mainland developers in terms of contract sales last year, and the group was only rated as an investment-grade developer a few months ago .

Shimao Group announced at the beginning of this month that it intends to raise nearly HK$1.2 billion by allotment to repay debts and other purposes. UBS believes that the group may sell its two development projects in Hong Kong in the next step, namely the Kowloon Tai Wo Ping project and its cooperation with local developers. It is estimated that if the two projects are sold, they can return about US$1.6 billion for the group. In addition, the group may also sell its property management branch Shimao Services 0873.HK equity.

UBS said it is reviewing the bank’s “sell” rating of Shimao Group and its target price of HK$8.7. Based on Tuesday’s closing price, the stock market’s book-to-book ratio was 0.21 times, while the average price-to-book ratio of the mainland housing sector was 0.8 times.

William Douglas has worked as financial analyst until his retirement. He is a well-known research director and portfolio manager for more than 5 years. After many years in the market, he dedicated all his time to write articles highlighting different financial problems and world news. He also cover news from all over the world.

Recent Posts

HP releases Z24m monitor that replicates Apple’s Center Stage lens tracking

HP's upcoming 23.8-inch Z24m monitor for creative professionals features a webcam that tracks the user's…

5 days ago

Andy Warhol’s “Monroe” wins for a record high of 25.3 billion yen

The portrait of Marilyn Monroe, produced by US pop artist Andy Warhol in 1964, is…

5 days ago

China Telecom announces officially Maimang 11 to be released on May 10, equipped with a 6000mAh capacity battery

China Telecom officially announced that Maimang's new product launch conference will be held at 19:08…

2 weeks ago

Google is raising pay to overhaul its employee vetting system, documents show

Google is overhauling its performance review process, implementing changes that will lead to pay increases,…

2 weeks ago

Top natural vitamin supplements recommended for men in their daily life

Vitamins are an essential macronutrient that has an immensely vital role to play in our…

4 weeks ago

Tencent Holdings to block access to unauthorized overseas games

Chinese game giant Tencent Holdings announced late on the 13th that it will suspend services…

1 month ago

This website uses cookies.