 2015-09-29 |
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YC (4306) anticipates revenue contributions from its real estate project "Wangzhou More," which is expected to be completed by the end of this year. Despite strong domestic housing market controls over the past two years, analysts estimate that the Wangzhou More project will contribute about NT$0.4 to NT$0.5 per share to YC's after-tax earnings.
In addition, YC is expanding into the hotel market. The building on Chongqing South Road is being renovated to become a youth hostel, with an expected opening in November this year, which will start generating revenue. On September 25th, YC’s stock price increased by NT$0.1, closing at NT$12.45.
The Wangzhou More project in Xinzhuang, which is nearly 90% pre-sold, is scheduled for completion by the end of this year, with a total sales amount of NT$1.1 billion. The second phase of the Xinzhuang project is preparing to apply for construction permits and is expected to start pre-sales soon. This phase covers an area of approximately 900 ping, with individual units estimated to be around 30 to 40 ping each, and a total sales amount between NT$3 billion to NT$4 billion.
Assuming a two- to three-year construction period, the second phase in Xinzhuang is expected to be completed by the second half of 2017.
In addition to revenue from real estate projects, YC is also working on asset revitalization this year, including renovations of its Chongqing South Road and Shilin Chengde Road buildings.
The Chongqing South Road building, which has only six floors and is farther from the MRT station, is being repositioned as a youth hostel with prices set below NT$1,000, aiming to attract backpackers. The hostel is scheduled to open in November, with an estimated initial monthly revenue of NT$2 million.
The Shilin Chengde Road building, with ten floors, will be converted into a medium-sized business hotel with 60 to 70 rooms, priced between NT$3,000 and NT$6,000. The goal is to achieve a monthly revenue of NT$6 million to NT$7 million. |
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