Century Property Group (CPG)

I was supposed to do dig some info about CPG when I saw the charts the other day. Last Tuesday, it went up to 1.80 and I thought I will be left behind. Today, the price is 1.69 and is just a notch lower than my buying price of 1.68.

Let’s take a look about the general info of CPG.

GENERAL INFO

Century Properties Group, Inc. (CPG), formerly East Asia Power Resources Corporation, was incorporated on March 23, 1975 as Northwest Holdings and Resources Corporation. In September 26, 2011, the Board of CPG approved the change in the Company's corporate name to its present name, as well as the change in its primary business purpose from power generation to that of a holding company and real estate business.

Century Properties Inc. (CPT) is the parent company of CPG. On September 2011, the Board of CPI approved the subscription of shares of CPI's subsidiaries to CPG in order for CPG to be engaged in the real estate industry.

The Company undertakes real estate projects and developments through its subsidiaries, namely: 1) Century Communities Corporation; 2) Century Properties Management, Inc.; 3) Century City Development Corporation; and 4) Century Limitless Corporation. CPG has built over 22 buildings and 720 homes, with a 100% completion rate of all its projects. CPG currently has four projects under development including Century City in Makati; Azure Urban Residences in Paranaque City; Aqua Residences in Mandaluyong City and Canyon Ranch in Cavite.

Source:www2pse.com.ph

PERSONAL CALCULATION

Earnings per share (EPS): As of Oct 2011, EPS is .202 . Averaging for the year 2011, EPS would be .24.

Price/Earnings Ratio: Price ÷ EPS

Price/Earnings Ratio: 1.7 ÷ .24 = 7.19 times.

If everything else equal, it is a good buy considering the fact they expect sales to top at 20 billion sales in year 2012.

http://www.century-properties.com/investor-relations2/#quarterly-reports

CITISECONLINE'S RESEARCH

Coincidentally, Citiseconline published its research about CPG last Tuesday, thus it lessen my burden of digging further and I just compare my notes against them.

According to Citiseconline, Century Properties is targeting a net income of Php2 Bil this year to be driven by higher sales and project completions. At the current price of Php1.69, CPG shares are trading at 7.56X FY12E P/E. This is lower than the industry average of 13.82X. Taking out ALI, which traditionally trades at a premium to other developers, the industry average is 9.92X, which is still higher than CPG’s current valuation.

I would like to note that most of CPG's properties are high-end type and more than 50% of their clients are overseas based.

LATEST NEWS

Century Properties collaborates with MissoniHome

The fun and colorful design aesthetic of Italian knitwear brand Missoni will now be replicated in the 52-storey Acqua Livingstone residential building being developed by Century Properties Group Inc.

This is the first condominium designed by MissoniHome in the world.

http://www.abs-cbnnews.com/business/03/08/12/century-properties-collaborates-missonihome

Century Properties eyes hotel development

Century Properties Group (CPG) is considering venturing into hotel development as it seeks to further expand its revenue stream.

CPG managing director Marco Antonio said the company is studying the possibility of diversifying into other segments of the market to build up its recurring income portfolio.

“We hope to grow recurring income base to more than 10 percent of the portfolio. With opportunities in the pending real estate investment trust law, it may serve as an impetus for us to create a recurring income stream,” Antonio said.

http://www.abs-cbnnews.com/business/03/04/12/century-properties-eyes-hotel-development

Century Properties eyes OFWs, Chinese, Singaporeans for Acqua Livingstone

Century Properties Group Inc. is building a 52-story development along Pasig River designed by Italian Missoni Home for P3.5 billion, the company said in a press conference over the weekend.

Called Acqua Livingstone, the development with a view of the Makati and Taguig skylines will be marketed mostly to overseas Filipino workers and foreigners.

“It is the first residential building in the world that will bear the creative and colorful mark of Missoni Home,” said Marco Antonio, Century Properties’ project head and managing director. “It is not available elsewhere, except in Missoni-branded hotels in Edinburgh, Scotland and Kuwait,” he noted.

http://www.gmanetwork.com/news/story/249610/economy/business/century-properties-eyes-ofws-chinese-singaporeans-for-acqua-livingstone

CPGI and parent Century Properties sell shares to Netherlands-based APG

Century Properties Group Inc. (CPGI) and parent Century Properties Inc. (CPI) are selling 868, 316,042 CPGI shares to Netherlands-based APG Strategic Real Estate Pool N.V., CPGI said in a statement Tuesday to the Philippine Stock Exchange.
CPI is the seller of the shares in the deal.

In January 2011, CPI issued convertible bonds to APG, but APG decided to enter into a purchase agreement for CPI to buy the convertible bonds from APG.

http://www.gmanetwork.com/news/story/248806/economy/companies/cpgi-and-parent-century-properties-sell-shares-to-netherlands-based-apg

TECHNICAL ANALYSIS

The main reason why i checked CPG's info is because of it's technical data. Looking at the chart, the trendline touches at four points which is a good indication that buying at 1.68 is a good call as long as 1.68 doesn't break. Past few days volume has increased also igniting some interest from investors as well as traders.

Whenever CPG touches the 1.8 price it is always going down thus that price serves as its resistance.