Sino-Ocean Group Affiliate Seeks Delay in Coupon Payment Amid Wave of Debt Extensions Among Chinese Builders

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SINO-OCEAN ($SEHK:03377): As China’s economy continues to face headwinds, an affiliate of state-backed developer Sino-Ocean Group Holding Ltd. has joined the wave of Chinese builders seeking to extend their debt payments. The company is reportedly looking to postpone a coupon payment on a bond, according to people familiar with the matter. Sino-Ocean Group Holding Ltd. is China’s leading investment and management corporation with a strong focus on real estate, infrastructure and financial services. It is listed on the Hong Kong Stock Exchange and is one of the largest companies by market capitalization in the country. The company has a large portfolio of assets across China, including offices, commercial properties, residential complexes and hotels.

Given the current economic situation, it is unsurprising that Sino-Ocean Group Holding Ltd. is looking to postpone the payment on its bond. The move is similar to that taken by other Chinese builders in recent months, as they look to relieve some of the pressure from their debt obligations. This wave of extensions could be a sign that more companies across the country will follow suit in order to better weather the current economic storm.

Price History

Friday marked a turbulent day for SINO-OCEAN GROUP, one of China’s largest real estate companies. SINO-OCEAN GROUP stock opened at HK$0.7 and closed at HK$0.7, following the news that an affiliate of the real estate giant had made a request to delay coupon payments on its bonds. Specifically, the affiliate of SINO-OCEAN GROUP requested a four-month delay in coupon payments to seek relief from the pressure of bond repayments.

This news follows a number of other Chinese real estate companies that have also requested debt extensions in order to cope with the current economic conditions. The SINO-OCEAN GROUP affiliate’s request for a delay in coupon payments serves to highlight the difficulties firms across the sector are facing and shows the need for continued monitoring of the industry going forward. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Sino-ocean Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Sino-ocean Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Sino-ocean Group are shown below. More…

Analysis

GoodWhale recently conducted an analysis of SINO-OCEAN GROUP‘s wellbeing and the results showed a strong record of dividend payouts and medium standing in asset, profitability, and growth. As a result, we classified the company as a ‘cow’, which is a type of company that has a track record of paying out consistent and sustainable dividends. As such, this company may be of interest to investors who are looking for companies with strong dividend payouts. However, SINO-OCEAN GROUP scored a relatively low health score of 2/10 when considering its cashflows and debt, which means it is less likely to be able to sustain future operations in times of crisis. Investors who are looking for dependable long-term investments need to consider this assessment when deciding whether or not to invest in SINO-OCEAN GROUP. More…

Peers

All of these companies strive to provide the best services and products to their customers while vying for a larger market share in the industry.

– Ho Bee Land Ltd ($SGX:H13)

Hoo Bee Land Ltd is a Hong Kong-based real estate company primarily engaged in property investment, development, sales and leasing of commercial and residential properties in Hong Kong. With a market cap of 1.57 billion as of 2023, Hoo Bee Land Ltd has a sizable presence in the real estate industry. The company has seen a steady increase in its market capitalization over the years due to its solid performance in terms of returns on equity. As of 2023, Hoo Bee Land Ltd had a return on equity of 6.65%, a figure significantly higher than the industry average. This indicates that the company has been able to generate higher returns on its investments, offering investors an attractive opportunity for growth.

– China Merchants Property Operation and Service Co Ltd ($SZSE:001914)

China Merchants Property Operation and Service Co Ltd is a leading property management company based in China. With a market cap of 17.17 Billion and a return on equity of 6.81%, the company is in a strong financial position. The company offers professional property management services for residential, commercial, and industrial properties across China. They provide a range of services including rent collection, security, maintenance, and housing repairs. Their market cap indicates their strong presence in the property management market and their ROE reflects the financial strength of the company.

– Beijing Capital Grand Ltd ($SEHK:01329)

Beijing Capital Grand Ltd is a Chinese conglomerate that provides a wide range of services, including investment banking, asset management, and real estate investment. The company has a market cap of 1.55 billion dollars as of 2023, indicating a strong presence in the industry. Furthermore, the company has an impressive Return on Equity of 4.06%, demonstrating its ability to generate returns from its investments. This indicates that the company is well-positioned to take advantage of future opportunities and generate value for its shareholders.

Summary

Sino-Ocean Group Holding Ltd. has seen an affiliate of the company seek to delay payment on a coupon. Investors should analyze the financial situation of the company and their ability to pay the coupon. They should also consider any outside risks that may be influencing the decision to delay and the potential impact of this on their financials.

Additionally, investors should recognize the potential effect on share prices and profitability if the extension is not granted. Ultimately, investors should consult their financial advisors before making any decisions.