CDI is one of these unspectacular hidden value companies. A land develoment company with developments in most parts of NZ, huge landbank, no debts, just quietly adding value.
11 cents EPS in 2021, 10 cents EPS in average over the last 10 yrs, regular dividend, 4 cents in 2021 (well, paid just recently).
NTA - $1 per share (and this is very conservatively valued - assets at cost, not at valuation). The estimated value of the landbank alone is more worth than the market cap of the company.
Books look incredibly healthy (you could say lazy) with liabilities to asset ratio of less than 4% .... and they still manage to squeeze out of that a 11% ROE.
And the share price? One can currently buy this beauty for only 82 cents per share.
So where is the hook?
This is a very tight hold share majority owned (through various funds and companies) by the Kwek family in Singapore. Part of the world wide CDL empire and for them just a minor nugget in a bonanza.
Nothing ever will happen with this stock without the Kwek family agreeing .. i.e. no point to dream of juicy take overs or similar, however - a very solid stock consistently paying dividends and long term still nicely appreciating.
SP currently in a cyclical low. Might be time to buy some more? Just don't be too greedy ... SP is easily driven up (or down) given the low liquidity.
Discl: happy long term holder.
Notes of the recent AGM: http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CDI/392532/371178.pdf
I effectively hold this through MCK (Which owns two thirds of CDI). Both companies do a fine job of disguising the true underlying asset value by listing assets on a cost basis instead of market value.
I think long term investors will be richly rewarded, as long as the company(s) maintain their proven record of fiscal discipline and sound judgement.
Quote from: LaserEyeKiwi on Jun 28, 2022, 01:35 PMI effectively hold this through MCK (Which owns two thirds of CDI). Both companies do a fine job of disguising the true underlying asset value by listing assets on a cost basis instead of market value.
I think long term investors will be richly rewarded, as long as the company(s) maintain their proven record of fiscal discipline and sound judgement.
I hold both ... but more CDI. Agree, both very sound companies ... not a get rich quick scheme, but I think get rich slowly (and with lesser risk) is anyway preferrable.
Also a long term holder surprised at its current valuation. The drip feeding of its land bank alone should ensure an excellent and reliable dividend for many years.
Half year results are out:
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CDI/396683/376113.pdf
Revenue down, earnings up - way to go :):
NTA further increased to $1.04 per share ... and don't forget - they calculate NTA really, really conservative (based on purchase price, not based on valuations).
Good to hear that their experiments with warehousing and commercial retail centres are going well.
Sounds like they are looking as well into some aquisition (if appropriate). They certainly could afford it.
All good - no surprises ...
Discl: happy holder.
A pretty reliable result again.
Annual report out, another excellent result considering. 3.5 cps dividend declared, market value of assets valued at book holding up well
https://www.nzx.com/announcements/409257
Forgot to add, still debt free
Quote from: teabag on Mar 31, 2023, 02:12 PMForgot to add, still debt free
And despite not depending on leverage a return on equity above 10%. This is quite impressive!
At 33%, the effective pre tax dividend yield is 6.87%, and with their large unrealized land and development values, very sustainable. I'm already overweight with them, so have only topped up slightly, but really, at 76 cents a share they are a long term keeper.
Snippets from the AGM:
While this years sales are roughly half of last years sales (YTD), margins are holding up compared to expectations.
It will be hard to match the 2021 / 2022 earnings (11cps each), but company expects to stay profitable.
No material impact of recent weather events on any of there developments or buildings
Current landbank equals (at average sales rate) 16.5 years.
Company is well cashed up ($71m as per end of April) and well positioned to use the depressed market to look for buying opportunities.
Well positioned of the future ... and quite optimistic.
Good pipeline:
CDI pipeline.JPG
Positive outlook:
CDI outlook CEO.JPG
It was a good week for my NZ portfolio. 2 stocks passed the Golden Cross, and CDI was one of them.
So - Technical indicators looking good ...
Fundamentals looking good as well (remember the value of the landbank per share as well as a 10 year backwards PE of 8 )?
Macroeconomic picture with more and more analysts talking about the real estate bottom reached looks good as well.
I like it when the indicators are aligned and pointing upwards ...
Sounds like NZX discovered they've been naughty for a couple of years in the past by understaffing their audit team. In 2020 they rectified this problem. No damage identified, but a $50k penalty ultimately to be paid by shareholders:
https://www.nzx.com/announcements/421752
https://www.nzx.com/announcements/421756
With council approving the downtown carpark sale, surely an attractive offer for the valuable waterfront M Social site is getting closer.
https://www.stuff.co.nz/national/politics/local-government/301014518/auckland-downtown-carpark-a-122-million-done-deal-despite-tempers
Quote from: Mos on Dec 04, 2023, 07:56 AMWith council approving the downtown carpark sale, surely an attractive offer for the valuable waterfront M Social site is getting closer.
https://www.stuff.co.nz/national/politics/local-government/301014518/auckland-downtown-carpark-a-122-million-done-deal-despite-tempers
MCK asset Mos 👍👍
Quote from: Crackity on Dec 04, 2023, 08:58 AMMCK asset Mos 👍👍
Great point! Posted to the wrong thread. Own both.
Just about to call time on the year and will be waiting keenly for the CDL result.Probably another 3.5c,would like more buti'll take it.
Quote from: notmaurice on Dec 18, 2023, 11:08 AMJust about to call time on the year and will be waiting keenly for the CDL result.Probably another 3.5c,would like more buti'll take it.
Yes, 3.5 cents is a solid yield with deep value on offer being another great reason to hold.vWas a slow first half, so will be interesting to see if development sales and profit have picked up in H2.
I SEE THEY HAVE JUST DECLINED 5C ON NO NEWS.
Yes, pretty thin trading volumes though.
Quote from: notmaurice on Dec 18, 2023, 12:10 PMI SEE THEY HAVE JUST DECLINED 5C ON NO NEWS.
You mean the price went down by 5c from 74c to 72c? I see why NZ is doing that bad in the Pisa tests. Anyway - total volume less than 3000 shares.
Wow!
Here is a suggestion - just buy one share ... cheapest on offer is currently at 79 cents, and you can push the shareprice into todays biggest gainers! How about that?
That's the thing with ultra low liquidity. Any sharesies investor can at will manipulate the shareprice.
Maybe lets save the shouting for situations when it is appropriate to shout.
Quote from: lorraina on Dec 29, 2023, 08:07 AMThe land at Worsleys Road,Cashmere Hills owned by Turners' Oxford Finance Ltd has been sold to CDL Land [a CDL company]
for $5.53 mil.
The land is likely to be divided into 60 sections.
Quote from: Hectorplains on Dec 29, 2023, 09:29 AMRV (8/22) of $7,692,500... on that bare metric (28% under) it looks a good pick up for CDL.
Some good insights from Lorraina and Hectorplains on CDL Investments purchase on the Turners thread. Looks like excellent buying that is likely to deliver strong development profits in the future. A great time to have around $65 m of cash and no debt on the balance sheet to buy prime development land when it can be secured at great prices. As they say, in the property game, you have to buy right.
plenty of cash and no debt,words i've heard Peter Lynch use to describe companies to get into.
Quote from: notmaurice on Jan 03, 2024, 01:02 PMplenty of cash and no debt,words i've heard Peter Lynch use to describe companies to get into.
Yes and land development a very attractive business if done well - and CDI have a solid track record. Wouldn't mind a share price dip back to 70 to top up outsized position.
ANOTHER 3.5C DIVY
$313K SHAREHOLDERS FUNDS AND $317K TOAL ASSETS.
i'm a bit thick on a monday morning so my question is this,are shareholders funds the same as cash on hand.????
Do you combine the funds on hand and total assets to get what this company is worth.???
Quote from: notmaurice on Feb 26, 2024, 09:21 AMANOTHER 3.5C DIVY
$313K SHAREHOLDERS FUNDS AND $317K TOAL ASSETS.
i'm a bit thick on a monday morning so my question is this,are shareholders funds the same as cash on hand.????
Do you combine the funds on hand and total assets to get what this company is worth.???
I'll leave that for BlackPeter to answer
Quote from: notmaurice on Feb 26, 2024, 09:21 AMANOTHER 3.5C DIVY
$313K SHAREHOLDERS FUNDS AND $317K TOAL ASSETS.
i'm a bit thick on a monday morning so my question is this,are shareholders funds the same as cash on hand.????
Do you combine the funds on hand and total assets to get what this company is worth.???
Without having looked into the notice and taking your numbers at face value - may I suggest you might have ignored some trailing zeroes?
$313 million of assets would sound much more likely for CDI than $313k.
Thats what happens on a Monday morning.Thanks for that.
OK - here is the summary directly from their announcement:
QuoteSummary of results:
• Profit after tax = $13.5 million (2022: $31.2 million)
• Profit before tax = $18.7 million (2022: $43.3 million)
• Property sales & other income = $31.2 million (2022: $67.3 million)
• Shareholders' funds = $313.7 million (2022: $308.9 million)
• Total assets = $319.2 million (2022: $313.7 million)
• Net tangible asset value (at book value) = 107.9 cents per share (2022: 107.0cps)
• Earnings per share = 4.64 cents per share (2022: 10.82cps)
Not bad for a bad year, I'd say. As usual, their shareholder funds are at book value - and their policy is to use for their books eitehr the purchase value or the recent valuation - whatever is the lower.
As usual - and despite all the dooms day talking in some forums, their landbank is worth significantly more than their book value - and it did rise over the last year.
QuoteCDI's property holdings as at 31 December 2023 as independently valued was $412.6 million (2022: $405.4 million). This takes into account new acquisitions made in 2023 as well as the sales recorded. At cost, the portfolio was valued at $260.4 million (2022: $239.5 million) in line with CDI's accounting policies.
Clearly - in bad times it pays to run your books very conservatively ... and their outlook is (given their typical lingo) quite bullish:
QuoteBoard and Management currently expect CDI's revenues and profits in 2024 to be better than those in 2023. Further updates will be provided as the year progresses. The Board and Management share an optimistic outlook for 2024, particularly if sales from Havelock North commence before the end of the year.
All good - looking forward to another boring year - just income stream rising again ...
no debt,plenty of assets, sp going down.Time to grab a few for my grandkids sharesie accounts.
Interesting company. I am curious why it is trading at such a discount to the Net assets if valued to market.
only my opinion as an amateur investor and i think its because 75% of the company is owned by the one family and imo they have no need for the share price to be high.
Just purchased approx 25 acres of industrial land in CHCh.Sounds like the will develop it,on sell some and keep some to increase rental income.Great stuff imo.
Quote from: notmaurice on Jul 12, 2024, 01:43 PMJust purchased approx 25 acres of industrial land in CHCh.Sounds like the will develop it,on sell some and keep some to increase rental income.Great stuff imo.
They are not going to let a recession go to waste.
Does this appear low risk and profitable to you?
Quote from: Clearasmud on Jul 12, 2024, 06:52 PMThey are not going to let a recession go to waste.
Does this appear low risk and profitable to you?
Yes. Acquisition cost of $170 per sq m hard to go wrong. Should be a good earner and relatively quick turnaround.
Quote from: Mos on Jul 12, 2024, 07:16 PMYes. Acquisition cost of $170 per sq m hard to go wrong. Should be a good earner and relatively quick turnaround.
I'm sure it will be great for the majority shareholder, less sure about the minor shareholders.
OK - given the way the majority holder tries to play retail shareholders at MCK, probably better taken with caution.
On the other hand - they are basically debt free, sit on a large (and undervalued) landbank, worth more than market cap and - interest rates are dropping.
I suppose they will stay undervalued, but it will be hard for CDL to prevent their SP from rising at all.
Current dividend yield (4.4%) looks as well better with interest rates lower.
Been hoovering up a few MCK. They'll have to pay $3+ to get the takeover over the 90% line, in my opinion.
Wife and I both have very modest holdings in CDI/CDL.
Everytime we try to add a few more we quickly get out bidded.
Major shareholder is a concern because I doubt they will share the rewards with others.
Quote from: Basil on Feb 20, 2025, 10:50 AMBeen hoovering up a few MCK. They'll have to pay $3+ to get the takeover over the 90% line, in my opinion.
So - this was you driving the SP up when I still tried to get some at a discount ?
Quote from: BlackPeter on Feb 20, 2025, 12:20 PMSo - this was you driving the SP up when I still tried to get some at a discount ?
Yes, sorry mate...when the Beagle senses there's a feed, he just follows his nose and starts accumulating lol. No final dividend. We are not stupid so whatever you are thinking is a takeover price you can tolerate, such as $3.50, add 3 cents to it which was last years final dividend.
https://api.nzx.com/public/announcement/447140/attachment/437958/447140-437958.pdf
Adrian Capital open letter, well worth a read if you haven;t read it already.
https://adriancapital.wordpress.com/2025/02/10/millennium-copthorne-hotels-an-open-letter/
The Press this morning.
Another 60 luxury homes should soon adorn the Port Hills after a Singaporean led company got the go-ahead for its development.
The 26-hectare block is on Worsleys Rd, near the top of the Christchurch Adventure Park and overlooking the Hoon Hay Valley.
Subdivision developer CDL Land NZ Ltd has owned the land for 18 months. The company is Auckland-based with majority Singaporean ownership and was granted permission by the Overseas Investment Office to buy it for $5.5 million in a mortgagee sale.
The Christchurch City Council has now issued CDL resource consent for earthworks on the hillside site to ready it for sections for 60 new homes, plus roading.
The land is zoned for low-density housing development and faces north and west. Section sizes are likely to be at least 3000m2.
Existing homes in the area are valued in excess of $1.5m.
The project is eventually expected to involve more than 100,000m3 of earthworks, and removal of non-native vegetation. Under the consent, the land will be surveyed to check for lizards before works begin.
The land was previously owned by another developer, Worsley Prestige Ltd, which had Christchurch and Auckland shareholders and was put into liquidation by the Inland Revenue Department in 2011. It was later sold by mortgagee Oxford Finance Ltd, which is part of the Turners Automotive Group, to CDL in late 2023.
Before going into liquidation, Worsley Prestige developed and sold seven sections, ranging from 300m² to 4000m², around Aglaia Pl, at the southern end of the block now sold.
The directors attributed the insolvency to the economic downturn of 2008 and the inability to refinance to complete the development.
The land was affected by the 2017 Port Hills fires, but escaped damage in the 2024 fires.
CDL Land NZ Ltd has subdivision developments across the country from Auckland to Queenstown, including Prestons Park in Christchurch and Stonebrook in Rolleston.
Quote from: lorraina on Apr 12, 2025, 06:50 PMThe Press this morning.
Another 60 luxury homes should soon adorn the Port Hills after a Singaporean led company got the go-ahead for its development.
The 26-hectare block is on Worsleys Rd, near the top of the Christchurch Adventure Park and overlooking the Hoon Hay Valley.
Subdivision developer CDL Land NZ Ltd has owned the land for 18 months. The company is Auckland-based with majority Singaporean ownership and was granted permission by the Overseas Investment Office to buy it for $5.5 million in a mortgagee sale.
The Christchurch City Council has now issued CDL resource consent for earthworks on the hillside site to ready it for sections for 60 new homes, plus roading.
The land is zoned for low-density housing development and faces north and west. Section sizes are likely to be at least 3000m2.
Existing homes in the area are valued in excess of $1.5m.
Thanks for sharing Lorraina. Acquisition cost of just under $92,000 per section before development costs very compelling. Should deliver strong margins and cash flows over the next few years.
Makes it more compelling for the Kwek's to take over MCK at a somewhat more reasonable price. $2.25 is totally derisory and deserving of upmost contempt.
Quote from: Basil on Apr 13, 2025, 10:53 AMMakes it more compelling for the Kwek's to take over MCK at a somewhat more reasonable price. $2.25 is totally derisory and deserving of upmost contempt.
You would think so. But yes, not sure, time is in this case on the side of the potential buyers, so - waiting is good. Some more good news and holders might need to review the underlying value of MCK upwards :) ; MCK's NTA was already end of last year at $5.39 and no doubt is drifitng upwards given the consolidation of the property market and CDI doing well.;
Only a year and a bit since anyone has posted on this dire company
It only gets cheaper eh
AGM tommoz
8)