5/3/2018-3

Wings 25,500 million to buy stocks

After the Wharf (00004) completed the spin-off last year, it actively reinvested its return funds from the second half of the year, including spending 25.5 billion yuan on stock purchases. Chairman Wu Tianhai emphasized yesterday at the performance meeting that the group is not a stock marketer, but is temporarily looking for “parking" for funds. Since Hong Kong “has not bought enough land," it has first invested some of its funds in Hong Kong blue chip property stocks. “There are discounts on real estate stocks and dividends are a few percent, but there is no dividend for the land."

Earn 2% more revenue last year than 7.2%

Last year, the revenue from the nine warehouses was 43.273 billion yuan, a year-on-year decrease of 7.2%, net profit was 21.876 billion yuan, an increase of 2%, basic earnings per share was 7.21 yuan, core net profit increased 14% year-on-year to 15.718 billion yuan, and the final dividend was 0.95 per share. yuan.

In addition to investing in real estate stocks, it caters to the general trend of technological development and plans for its traditional businesses. Therefore, it will also invest approximately 65% ​​of its capital in 25.5 billion yuan, that is, about 15.3 billion yuan in new economic shares, and will be called CME2 (Communication, Investment in media and entertainment.

Wu Tianhai did not disclose what shares he bought, and only called shares invested by CME2, mainly China’s new economic stocks, including large online platforms. The future will be more than simply investing in shares. It will study how to integrate technology into the business.

He also stressed that instead of turning the Wharf into a venture capital fund, “we don’t know VCs, it’s a rainy day." Therefore, when making a decision, such as investing in an unlisted company, the company needs its business model. Mature and in the future will also have great opportunities to find new investments in the United States.

In the coming few years, the Group will still focus on real estate business in China and Hong Kong. Regarding the market’s focus on the positioning and division of labor of Wharf, Wheelock (00020) and Jiujia (01997), he believes that positioning is not the most important, apart from placing important rental properties. Within nine homes, when any company has resources, it will be able to take the initiative if the timing is right, making the business and investment more flexible.

As of the end of February of this year, the Jiucang unaudited its comprehensive assets. After eliminating cash, it was approximately RMB 210 billion, of which 75% were properties and 15% were stocks.