Hong Kong 1980: The Savage Era

Chapter 403 404 [Asset Status]

Generally, after a stock market crash, there will be varying degrees of corporate acquisitions. After all, mergers and acquisitions are the best way for a company to grow.

In Hong Kong, people like Liu Luanxiong and Luo Xurui are still a minority. Most people, like Wong Yuk-long and Cheng King-hon, make a small fortune in the stock market or save money during booming markets and wait for acquisitions when the market is bad.

Of course, even during the period between a booming market and a bad market, it is not necessarily possible to successfully acquire the company.

Therefore, it was normal that the acquisition of Yulang International Group by Zheng Jinghan of Paramount News Company failed, and Zheng Jinghan would also make a lot of profits from this acquisition.

According to Luo Qihong's estimate, the profit from this acquisition was tens of millions, one twentieth of the market value of Yulang International Group.

Before Luo Qihong could react, Wu Xiaohao called him anxiously to tell him that a third party had joined the acquisition, but Wu Xiaohao had not yet found out who it was.

Luo Qihong vaguely guessed who it was, but she didn't expect that the stock market crash did not cause her to suffer major losses.

However, after careful consideration, Luo Qihong took into account that the local cities were not greatly affected by the stock market crash, which was the result that the local cities had not had time to react.

Compared with the acquisition by Yulang International Group, the acquisition by Swire Properties has attracted more attention, and its share price has risen to 8.9 yuan, an increase of more than 34%.

On September 9, the market heard that a major Chinese investor wrote to the Hong Kong Land Development Co., Ltd., requesting that Cheng Yu-tung and Lee Shau-kee be appointed as directors of the Hong Kong Land Development Co., Ltd. at the annual general meeting of shareholders of the Hong Kong Land Development Co., Ltd.

Stimulated by this news, the share price of Swire Properties soared again, breaking the 10 yuan mark and reaching 10.3 yuan.

The stock price is already 4 times that of April and May, and the stock price has not stopped rising.

An economic magazine said that the scale of Hong Kong Land is too large, and as long as the Chinese financial consortium is determined enough, there will be no problem for Hong Kong Land's share price to cross the 15 yuan mark.

This magazine was originally a niche magazine, but due to its in-depth analysis and its appeal to stock investors, its sales have soared, and it is said that it has exceeded 5 copies.

With such an excellent example, other economic magazines followed suit and conducted various analyses on the Hong Kong Land Development and the acquisition.

Suddenly, this boosted the share price of the Swire Properties Group, and it seemed that the two had entered a cycle.

Siu On Real Estate Company Office

Today's stock market has recovered, and stimulated by numerous takeovers, the Hang Seng Index continues to rise, seemingly returning to its state in 85.

The rights issue plan of Siu On Properties was already relatively mature, and other real estate companies were also ready to move, such as Chinese Estates Holdings. Liu Luanxiong urgently needed funds to offset the losses in 87.

"Boss, the market value of Zhaoan Real Estate has risen to 86 billion yuan, with a debt of 32 billion yuan and a debt ratio of 37.2%. The actual net asset value is 34 billion yuan, with an average share price of 16.2 yuan," Cheng Jianshen reported.

"The debt ratio is not high, but the debt amount is not low. Once there is a stock market crash similar to the one in 87, the company will still be in trouble." Luo Qihong thought for a while and said, "I remember that Huaguang Real Estate and Legu Real Estate both have some scattered properties. You can consider selling them and use the funds obtained to fill the debt and strive to reduce the company's debt to 20 billion yuan."

"Yes, I will arrange for staff to follow up." Kang Wenyi responded.

Kang Wenyi saw that Cheng Jianshen had finished his report, and then he reported, "After the privatization of Huaguang Real Estate Company, Zhaoan Real Estate has a rental floor area of ​​631.7 million square feet, of which 138 million square feet are in Central and 205.2 million square feet are in Tsim Sha Tsui. The annual rental income can reach 10 billion yuan."

After hearing Kang Wenyi's report, there was not much surprise on everyone's faces, but there were great waves in their hearts. The rent of 10 billion yuan is very scary. This is the market value of a small listed real estate company.

If there were a little more rent, it would be enough to cover the market value of a medium-sized real estate company.

Chen Zhilong calmed down and said, "In the first half of the year, the company sold three new buildings, with a floor area of ​​3 million square feet, and a profit margin of 140%, which is 31 million yuan. Now there are four buildings under development, which are expected to be completed and sold in the first half of next year."

"Speed ​​up the progress, and consider selling pre-sale properties." Luo Qihong immediately changed his previous style. Since Zhaoan Real Estate Company was not good at land development and did not make much profit, it had always built and sold properties by itself, and rarely engaged in pre-sale properties.

"If the sale can be completed before May, there will be no need to sell the property under construction," Luo Qihong added.

Chen Zhilong has followed Luo Qihong for so many years and knows that something big must have happened.

“Another crash?”

Luo Qihong shook his head. "It's not certain yet. The environment in the mainland is not very good."

"As you know, Hong Kong's business environment is greatly influenced by the mainland. I am worried that the bad situation in the 60s will return. So it's better to make less money. There is no need to take risks."

Chen Zhilong was slightly stunned. He still remembered the turmoil in the 60s. Not only was the real estate affected, but the safety of the citizens could not be guaranteed.

“I will try to complete and sell two sites, and sell the remaining two sites as pre-sale properties.”

"Well, you guys make a plan." Luo Qihong couldn't take care of so many things and could only grasp the general direction.

Hearing this, Kang Wenyi asked, "Should we prepare some funds to buy properties at the bottom?"

"Zhaoan Real Estate Company already has enough properties. Let's raise 7 million yuan and mainly acquire commercial buildings, shopping malls and shops in Causeway Bay and Wan Chai," said Luo Qihong.

"How much preparation is needed to bottom out the stock market?" Cheng Jianshen took the opportunity to ask.

"No more than 10 billion yuan!" Luo Qihong gave a random number.

"Are you going to sell the 1.6% stake in the real estate company?" Cheng Jianshen looked at Luo Qihong.

Cheng Jianshen is in charge of the acquisition, stock and securities businesses of Zhaoan Real Estate Company and has made his own judgment.

According to his estimation, the share price of Swire Properties is about to reach its peak. Although there will be some losses if he sells it at this time, it is not that risky.

"Sell it, there's no need to wait until the highest point." Luo Qihong nodded.

Then Luo Qihong came to Dehe Real Estate Company.

Su Qishan ran in and reported his work to Luo Qihong.

"Boss, Admiralty Plaza is expected to be occupied before December. By then, the first phase of properties can be fully rented out. After the first phase of properties are rented out, the second phase of properties will be rented out." Su Qishan said.

"How about two high-end hotels?" Luo Qihong picked up the document and opened it, glancing at Su Qishan from time to time.

"We have introduced a hotel management company from the United States. We will accumulate experience as quickly as possible. The contract is for three years. I believe that after three years we can work alone without the Americans." Su Qishan said confidently.

"Well, how is the acquisition of the third building of Dehe Plaza in Wan Chai going?" Luo Qihong asked, because there was no information report on this in the document.

"It's very troublesome. After those owners knew that you were the boss, they kept asking for high prices. Some even asked for twice as much." Su Qishan said angrily, "They treated us as suckers. If we really did that, we would be scolded to death by our peers. We have raised the property prices in Wan Chai to an incredible level."

"Then take your time. We are not in a hurry anyway. The third one is just the icing on the cake, not necessary." Luo Qihong smiled and waved his hand. "Don't be so angry. Small vendors will certainly make a fortune."

(End of this chapter)