Cheung Kong to launch 7,700 units in 2013

That's more than double of its average annual sales.

According to maybank Kim Eng, Cheung Kong announced that it will launch over 7,700 units for FY13 in HK and China, versus average sales of 3,000 per annum over the last few years. 

Here's more:

Last year, CKH sold 3,500 units with proceeds of HKD30b. The estimated FY13 proceeds will reach historical high of HKD35-40b. The company estimated that China will contribute a quarter of sales for this year, while 5 HK projects will be launched with over 5,200 units for sale.

Notable large-scale project in HK including Tsuen Wan’s City Point (1,720 units, expected to be launched in 3Q13), LOHAS Park Phase 3 in Tseung Kwan O (1,648 units, 1H13) and Mont Vest in Tai Po (1,350 units to be launched by end-2013).

The number of units on offer in HK is inline with market’s expectations. The 3 largest projects (totalling 4,718 units or 90% of total available for sale units of 5,238) have long been expected by the market since 4Q12, which will be launched in various quarters in 2013.

CKH is expected to maintain its ‘fast asset churn’ position in launching project, as the management also revealed that they opt for volume rather than setting record prices (in ASP terms) in property sales this year.

The increased China contribution from c10% to 25% this year will also help in mitigating concentration risk for Cheung Kong, in our view.

CKH is trading at 33.4% discount to mean consensus RNAV of HKD175.4 per share, which looks attractive after the counter recorded a price correction of 13% since early January. Accumulate on any share price weakness.