AVJ

Vale (AU$) 0.8
Safety-margin 0.6
Pro Cons
  1. record lots under development
  2. Net Tangible Assets per Share $0.95
 high leverage compared to uk properties companies

http://www.asx.com.au/asx/share-price-research/company/AVJ

  • 28/06/2017  First Residents Move into Waterline Place at Williamstown;
    Total presales for the 71 apartments was $42 million and settlements have already been completed for 36 apartments.
    the newly released Gem apartments at Waterline Place. Gem contains approximately 92 new apartments. One bedroom apartments are available from $505,000, two bedroom apartments are available from $670,000 and three bedroom apartments are available from $1,160,000. The release of the Gem apartments follows the success of the Rosny sales and is consistent with AVJennings’ overall project plan forWaterline Place.
    [entering the apartment building business!?]
  • 23/06/2017 AVJennings Completes Sell Down of VSF Shares: an average price of 62.1 cents per share. This sell down adds 9,553,951 shares to the AVJennings shares quoted on the ASX.
  • 09/06/2017 Final Director’s Interest Notice – David Tsang:
    SzeHang Tsang (David); 837,396 Ordinary Shares 
  • 07/06/2017 Resignation of Director:Mr David Tsang, a Non-Executive Director;
    the appointment of Mr Tan Boon Leong as a Non-Executive Director
  • 06/06/2017 Peter Summers
    1. Indirect interest 2,617,753 Ordinary shares
    2. Direct interest 1,140,785 Ordinary shares
    3. Indirect interest 585,227 Service Rights
    4. Indirect interest 1,283,410 Performance Rights
  • 31/05/2017 Investor Presentation – 31 May 2017

    DIVIDENDS:Continuing to target a dividend payout ratio of 40-50% of earnings
    GEARING: maintain a net debt to total assets within the range of 15% to 35%
    Balance sheet gearing at 25.8% provides flexibility


  • 05/05/2017 Change of Director’s Interest Notice-Simon Cheong Sae Peng
    on 4 May 2017 bought 11.5m shares on market @ about 0.62; total: 203,818,030; 50.03%=>53.02%
  • 17/03/2017 Ceasing to be a substantial holder from IOOF
  • 20/02/2017 Investor Briefing-31 December 2016 Half Year Results

    Major 1H17 acquisition was Riverton, Jimboomba: 50% interest in 127 hectares of land in Jimboomba, QLD (approx. 1,057 lots)

    [borrowing is somewhat higher compared to persimmon uk]
  • 18/11/2016 ceo speech. long-term. bright outlook
  • 19/10/2016 Ioof 11.4%->10.23%
  • 18/10/2016 Annual Report 2016
    • Profit before tax increased 22% on the previous year to $58.8 million. Gearing remains conservative at 17.9% [net debt to total assets. 132/741; net debt/equity 36.4%]; (30 June 2015: 13.6%)
    • land bank of 10,048 lots at similar levels to last year (10,198 lots).
    • declare a final dividend of 3.5 cents bringing total dividends declared for the year to 5.0 cents per share
    • Revenue +32.7% • PBT +22.0% • E P S +18 . 6%; PAT 19%
    • $250 million ‘Club’ banking facility extended to Sept 2018
    • Contract signings (lots) +5.5%; WIP +11.2% [?]
    • [why rev increased more than NPAT? maybe for saving tax or cost too much?]

    • Total cash dividends declared and paid $17,299k ($11,532k)
    • [Inventories. Right value? locations? Capitalized interests?]
    • Borrowing costs attributable to qualifying assets are capitalised. These include interest, fees and costs associated with interest rate derivatives and have been capitalised at a weighted average rate of 6.18 (2015: 6.90%).
    • Inventory with a carrying value of $98,405,000 (2015: $18,019,000) was pledged as security for project specific borrowings (refer to note 12(b)). The Group’s remaining inventory has been pledged as security for the main banking facility (refer to note 12(a)).
    • [NI/finance costs: 40/12.5 = 3.2]
    • c
  • 7/10/2016 Peter summers sold 27,586 ordinary shares
  • 28/9/2016 AR 2016
    • The profit after tax for the financial year was $40.9 million (2015: $34.4 million).
    • fully franked final dividend of 3.5 cents per share was paid on 23 September 2016 (2015: 3.0 cents).
    • net debt/total assets of only 17.9% (30 June 2015: 13.6%)
    • Return on Market Capitalisation 19.12 [now 40.9m/234m = 17.47%; PE=5.72]
    • S Cheong 192,318,030    –      [more than 50%]
      PK Summers 3,119,775
    • Diluted earnings per share  10.71          ( 9.03)
    • Interest-bearing loans and borrowings   165,466k
      Interest-bearing loans and borrowings   10,057k
      Total liabilities 377,475; Net Assets 363.9m
    • Inventory 554m
    • Net cash from financing activities 31,500            29,609
      Net cash used in operating activities 17 ( 28,310 )          ( 14,360 )
      Increase in inventories ( 26,899 )          ( 120,075 )
      Change in inventory loss provisions ( 9,189 )            ( 16,051 )
    • Net debt to equity ratio 36.4% 26.4%
    • Weighted average number of ordinary shares for EPS 382,085,697
  • 18/8/2016 Distribution Amount 3.5c; Payment Date Friday September 23, 201
  • 18/8/2016|30 June 2016 Preliminary Final Report
    • Revenues 421,884k; py 317,903; up 32.7%
      Profit after tax 40,912k; 34,385; up19.0% [10% of sales]
      Dividend 5c; py 4c
    • Selling and marketing expenses ( 11,002 ) ( 7,126 )
      Employee expenses ( 24,797 ) ( 20,402 )
    • Diluted earnings per share 10.71c; 9.03
    • Interest-bearing loans and borrowings 165,466; py123,716
    • Net assets 363,907; 337,346
    • Total liabilities 377,475; 318,768
    • Net cash used in operating activities (28,310); (14,360)
    • Net Tangible Asset backing (NTA) : 94.5c; 87.8
  • 6/7/2016 Peter Summers CEO
    1. Indirect interest 2,483,689 Ordinary shares;
    2. Direct interest 1,140,785 Ordinary shares
    3. 247,962 Service Rights
    4. 417,106 Performance Rights
  • 8/2/2016 Dividends
    Distribution Amount AUD 0.01500000 fully franked ($5.766m; 384.4m shares)
    Treasury shares ( 2,721,454 ); Share capital 381,702,397
    Ex Date Thursday March 31, 2016
    Record Date Friday April 1, 2016
    Payment Date Friday April 15, 2016
  • 8/2/16 H1 FY 2016
    Revenue +57.9% to $187.2 million
    PBT +42.2% to $23.9 million
    NPAT +39.2% to $16.5 million
    NTA per share $0.89
    NSW, QLD and Auckland markets strong
    WIP up 5.5% to 1,623 lots
    Contract signings up 14.6% to 999 lots
    Settlements up 5.2% to 694 lots
    Land under control up 2.3% to 10,436 lots
    gearing low at 22.9%
    FY16 target dividend payout ratio reaffirmed at 40-50% of NPAT
    Contract signings 1,800 to 2,100 lots reaffirmed
    image
    imagenew acquisitions including:
    land parcels at Spring Farm, Sydney (540 lots)
    acquisition of remaining 50.0% interest in ‘Argyle at Elderslie’, NSW
    land parcel at Buckley B Precinct Stages 2B/4, HobsonvillePoint, New Zealand land parcel at Bridgeman Downs, Brisbane (approx. 60 lots)
    The Company also continued its programme of diversifying and expanding its sources of funding by securing a project finance commitment of $92 million for ‘Waterline Place’ at Williamstown, Victoria.
    image
  • 20/10/2015 Annual report 2015
    Profit before tax $48.2 million (up 78.3% from $27 .0 million) and $34.4 million after tax
    Revenue $317 .9 million (up 26.9% from $250.6 million)
    Contract signings up 22.8% to 1,737 in line with guidance and settlements up 22.6% to 1,538 contracts
    EPS up 82.8% to 9.0 cents per share and return on balance date market capitalisation increased to 13.9% from 8.6%
    total dividends declared since 2000 to FY15 inclusive is $185.8 million
    Profits after tax was $34.4 million (2014: $18.8 million)
    total dividends declared for 2015 to 4 cents per share. the Company to target an annual dividend payout range of 40-50% of profit after tax for future years.
    Future results will be enhanced by development of the Company’s new flagship apartment project ‘Waterline’, located in the Melbourne bayside suburb of Williamstown and the Wollert joint venture development being undertaken with AustralianSuper.S Cheong 192,318,030;  holding 50.03%
    EPS: 9.03c; net profit margin: about 10%
    Cash from operations are negative in last two years. Borrowed more.
    image
    Usually there are more settlements in H2!?image
    image
    image
    imageimageimage

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3/6/2014 Hobsonville Point’s Catalina Precinct Takes Off

AVJ expects to complete the Buckley Precinct in 2015. Development of the Catalina Precinct is likely to take three years, and be completed in 2018

22/10/2013 Annual Report 2013

  • Sales: $158.5M; 52.9(H1)+105.6(H2); down from $188.8M; but H2 almost doubled
  • Profit: -$15.3M; including impairment -$16.1M
  • Total Assets: $462.9M
  • Total Lots: 9,952
  • Net Tangible Assets per Share $0.76
  • a Entitlement Offer in the second half raised $40M after transaction costs
  • no dividends.
  • Net Debt: $83.3M (2012: $129M)
  • Shares held: S Cheong 192.3M; PK Summers 2.41M
  • total number of shares 384,423,851

AV Jennings representative: 131 878

Sydney office: +61 2 9846 6400   Mon-Fri 9am-5pm; Sat-Sun 10am-5pm

16/08/2013 Appendix 4E-30 June 2013 Preliminary Final Report

Revenue: 158.46M (2013); 188.81M (2012); (16.1%)

Loss: (15.266M) (2013); (29.83M) (2012); 48.8%

A full year profit after tax of $0.8 million was recorded before the impact of provisions for loss on inventory taken up as at 31 Dec. 2012 (no inventory provisions were recorded in the second half).

The profit after tax for the H2 significantly improved to $3.8M… second half revenue of $105.6M almost doubled that of the six months to 31 Dec 2012 due to the completion of inventory and gradually improving market conditions, particularly in NSW.

Offer that raised $40M after costs.

Net Debt $83.3M (2012: $129M)

Total shares: 384.42M. Equity 295M

24/04/2013 Offer Document

  • 10,500 lots under control, acquisition of 3000 lots in 2010; Loan+payable: about $214M
  • Inventories $406M; Net Assets $250M; NTA per share: 90 cents; shares: 274.6M
  • sales per lot/unit: $168k; $166k; $210K in FY10 11 12
  • Market Value: $156M?
  • In the future, AVJ’s near term objective is to return lot sales to levels achieved in FY2010 and FY2011
  • QLD Market suffered recently due to short term issues, such as:
    • Effects of flood
    • Lower population growth
    • Impact on tourism
    • Softening in mining sector
    • Softening in mining sector
  • Soft sales environment and land sales harder to achieve:
    • Consequently, largest proportion of inventory write-down relates to Queensland–79.3%
  • 29/04/2013: the closing date of the offer is 7pm (Melbourne time) on 24 May 2013,
  • 24 April 2013Eligible shareholders will be invited to subscribe for 2 New Shares for every 5 AVJ shares held at 7.00 pm (Melbourne time) on the record date, 3 May 2013.
  • For the half-year ended 31 December 2012n most markets in which the Company operates, with the exception of Victoria, underlying fundamentals are strong, or at least stronger, than they have been in recent times. Affordability has generally improved, primarily as a result of negative or subdued price growth, lower interest rates and income growth remaining ahead of inflation. Additionally, supply has often not kept pace with underlying demand. However, subdued market conditions have generally continued through calendar 2012.