CDI - CDL Investments NZ Ltd

[BlackPeter]

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

[LaserEyeKiwi]

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.

[BlackPeter]

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.

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.

[teabag]

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.

[BlackPeter]

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.

[notmaurice]

A pretty reliable result again.

[teabag]

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

[teabag]

Forgot to add, still debt free

[BlackPeter]

Forgot to add, still debt free

And despite not depending on leverage a return on equity above 10%. This is quite impressive!

[teabag]

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.

[BlackPeter]

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:
You cannot view this attachment.

Positive outlook:
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[BlackPeter]

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 ...

[BlackPeter]

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

[Mos]

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

[Crackity]

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

MCK asset Mos 👍👍