Do the math and this indicates that NTE's land is worth almost 1 billion US. I would argue that this number is low and using the more accurate number of 3 million buildable square feet from the conference call and applying at least $300 per sq foot would put the land at a value of north of 1.2 Billion US. At a stock price of $13, NTE has an enterprise value of only $380 million, which is only one third the value of the land.
Shenzhen’s Qianhai to Develop Three Land Plots worth CNY 470 Bn
Jan 22, 2013 5:28 PM GMT+0800 | Prepared by ChinaScope Financial | Source: Netease
It is informed that the government of Shenzhen’s Qianhai District is currently talking with the owners of three land plots in Qianhai regarding the land development plan. The three land plots, with a total area of 4.12 millions square meters, are respectively owned by China Merchants Group, China International Marine Containers (CIMC) (2039: HKG; 000039: SHE), and Shenzhen International Holdings (0152: HKG).
The total assessed value of the thee land plots is around CNY 474 billion, of which CNY 359 billion is owned by China Merchants Group, CNY 58.4 billion is owned by CIMC, and CNY 55.8 billion is owned by Shenzhen International Holdings.
Land policy advisory bodies in Qianhai have recommended the government to introduce Hong Kong-based real estate companies to develop the land plots. New World Development (0017: HKG), one of the four major developers in Hong Kong, signed a cooperation agreement with Qianhai in July 2012 to invest more than CNY 1 billion. Cheung Kong Holdings (0001: HKG), Sun Hung Kai Properties (0016: HKG), and Henderson Land Development (0012: HKG), the remaining three, have not revealed any plans to cooperate with Qianhai.
Land lease is the same as owning it as far as valuation is concerned. Leases are renewed and never revolked, and the fee to renew is minimal. It's not like leasing land in North America. It's simmilar to owning land in North America.
And it's the same area, inside the 15km zone. So yes.
Sentiment: Strong Buy
I wonder if you can share the profit to others when you find the gold. This is a sign to show how terrible of NTE's core business drop! Someone knows it well like you. You try to change attention to a virtual value land.
iceman, do you have a problem with reality? It will be easier on you if you pull the blinds, turn off the TV and Radio, and unplug your internet service. Then close your eyes, and repeat, I am in my happy place. I am in my happy place. The world is as i see it. I am in my happy place.
Note you also should unplug your phone line, this way when the bank calls you to cover your short, your reality won't be shattered. The truh hurts.
Lets see from the math then. The 4.12 millions square meters of land equals 44.34 million square feet. The total assessed value of $474 billion RMB equals 76.2 billion US dollars.
So about $170 per square feet. However it sounds they are talking about the actual size of the land and not buildable square feet. Am I missing something here?
This is raw land. NTE has about 530,000 sq feet raw land. You made a mistake in your numbers, and it works out to 1,720 per sq foot raw land. So you get a little over 900 million for the raw land.
More accurate would be to use buildable sq feet as that has been what they have been aurthorized for by the zoning. I would guess it would be worth over $300 per squar foot and had used $400 for the 1.2 billion. Made a typo with the $300. Either way it doesn't really matter anyways. Just buy the stock and wait.
If I made a mistake, somebody correct me. Except the #$%$ who wants the land stolen from him but still wants to buy the stock at $10.
Bad Math. 3 million square ft * 300 is $900 million, not $1.2 billion. You are not honest.
Also, 45 million shares * $13 is $585 billion, less cash = EV of $428 million not $380 million. You are deceiving.
Mr. Koo will spin off real estate for himself and you will see nothing. I will buy at $10 with herr hager
Sorry, made a mistake on the 3 million and 900 million, but you are wrong on the EV. EV is $380 million at $13. Cash is over 200 million now. This is what happens when a company makes money. It builds up.
Now, the other issue is.... Koo will keep everything and you will see nothing???? Are you an idiot??? You actually think people will believe this? I think i have seen you post #$%$ before, and this just confirms it. Can't you find anything better to short?
P.S. if I recall correctly, you are wrong most of the time.