Image source: Golden Dayz

Highlights

  • Cedar Woods Properties focuses on property investment and development ventures within Australia
  • In 1HFY24, CWP’s profit before tax fell by 78.5% YoY to AUD 2.8 million
  • Hames (William George) has the maximum stake in the firm with a shareholding of 13.36%

Cedar Woods Properties Limited (ASX: CWP) is an ASX-listed firm with focus on property investment and development ventures within Australia. The company actively participates in the development of residential, commercial, and retail properties across Western Australia, South Australia, Victoria, and Queensland.

In the first half of financial year 2024 (1HFY24), gross profit of CWP declined by 14.8% YoY to AUD 32.3 million, and profit before tax decreased by 78.5% YoY to AUD 2.8 million. The period recorded a fall in revenue because of lower value land settlement. Lower revenue, accompanied by higher finance cost resulted in lower profit in 1HFY24.

At the end of the half, cash and cash equivalents stood at AUD 6.7 million, 36.7% higher than the previous corresponding period.  

Top 10 shareholders of CWP

The top 10 shareholders of CWP have around 46.94% shareholding in the company, while the top four shareholders have around 36.86% stake in the firm. Hames (William George) and AustralianSuper have maximum stake in the company with a shareholding of ~13.36% and ~11.27%, respectively.

Recent business update

On 30 April 2024, the company released its third quarter report for the period ended 31 March 2024. During the three-month period, the company reported a 14% YoY increase in presales to AUD 570 million. The period saw ongoing sales momentum and sales and settlement of the Williams Landing Shopping Centre (WLSC) for AUD 60 million.

In the latest quarter, the company established a new partnership with Tokyo Gas and QIC. Under these structures, three projects were announced with additional projects to follow. The quarter ended with liquidity of over AUD 100 million.

Outlook

The company had executed the sale of WLSC and has presales contracts of AUD 570 million in hand. Considering this, the firm expects to report NPAT of AUD 36 – 39 million.

In the medium term, the company is on track to achieve growth, given the increase in migration, limited housing supply and pipeline of more than 9,000 undeveloped lots across four states.

The company has contracted to buy a huge strategic site near the current Incontro project, located in Subiaco. This site is anticipated to have over 200 apartments in 2-3 different buildings.

Share performance of CWP

CWP shares closed 3.26% higher at AUD 4.75 apiece on 7 May 2024. Including today’s gain, CWP’s share price has fallen by 1.04% in last one year and in the past six months, it has increased by 3.49%.

The 52-week high of CWP is AUD 5.660, recorded on 15 August 2023, and the 52-week low is AUD 4.200, recorded on 30 October 2023.

CWP Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 07 May 2024. The reference data in this report has been partly sourced from REFINITIV.