Group Overview
The Group is a property developer, mainly developing properties in industrial buildings in Hong Kong for sale or leasing. According to data reported by JLL, as far as the private industrial market is concerned, the group ranked fifth in terms of the building area of completed properties since 2011.
The Group's business is based on the operation of two main business divisions, divided into property development and property investment. During the track record period, the Group operated property development as its main business segment, and most of the Group's revenue came from the property development business. However, the Group expects that when the Yufeng project is completed, the income from the property investment business will increase.
IPO Express: Star Properties Group (Cayman Islands) Limited (1560.HK) Stock Profile
Cash purchase through Zhifu Securities
Normal cut-off period: July 4, 2016 5 p.m. Extended cut-off period: July 5, 2016 10 a.m. Full payment Customer processing fee: (Online application) $0
(not online application) $50
(Note: The processing fee for all applications during the extended deadline period is $50) Industry Overview
Hong Kong's property market has traditionally been dominated by a small number of large local developers. However, more and more small and medium-sized real estate developers are participating in the redevelopment market, which is booming and has the potential to grow.
The demand for newly built industrial buildings and studio buildings in Hong Kong is on a steady growth pattern. The demand for related properties is relatively stable and supply is relatively limited.
Risks
valuations
Due to the cost of acquiring land in Hong Kong, it may be difficult to obtain suitable development land and existing industrial buildings at commercially reasonable prices. The Hong Kong Government controls land supply and regulates many aspects of the land acquisition and development process. The relevant land supply policies implemented by the Hong Kong Government may have an impact on the group's ability to acquire land and the composition of acquisition costs. Such regulatory measures may also further increase competition over land among property developers.
According to the prospectus, assuming that the global offering was completed on December 31, 2015, based on the anticipated issuance of 224 million shares after completion of the stock offering and capitalization, shareholders accounted for the net worth range of consolidated tangible assets of HK$396 million to HK$415 million, equivalent to the adjusted net value range of tangible assets per share of HK$1.77 to HK$1.85 million based on unaudited notes.
