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BALWIN PROPERTIES LTD

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BWN trade ideas

Our opinion on the current state of BALWIN(BWN)Balwin Properties (BWN) is a South African developer focusing on secure sectional title properties, recently diversifying into renting out properties to generate a more stable income stream. The company is leveraging solar power and internet fiber installations to add value to its developments. Initially listed at R10 per share, it now trades around 270c. Given the significant challenges in South Africa's property market due to tough economic conditions and a recession, Balwin’s move into rentals could provide steady income to offset fixed costs and contribute to profitability. Balwin holds 25% of Balwin Rental, which has the option to purchase up to 4544 units developed by Balwin, helping stabilize revenue. The company is also expected to list Balwin Rentals eventually. A significant project for Balwin is the Mooikloof Mega City, a R44 billion public-private partnership aimed at the gap housing market (for those earning between R3,500 and R22,000 per month). Launched on 4th October 2020, this project initially boosted Balwin’s share price by 13%. In the six months to 31st August 2024, Balwin reported: - Revenue down 28% - Headline earnings per share (HEPS) down 57% - Net asset value (NAV) rose 3% to 875c per share The company cited high interest rates as a significant pressure on the residential property sector. Technically, the share had been in a long-term downward trend but broke upward through its trendline on 27th September 2024 at 218c per share and has since moved up to 245c. Trading at 28% of its NAV, the share appears undervalued, and Balwin could see continued recovery as the broader economy stabilizes.
JSE:BWN
by PDSnetSA
Our opinion on the current state of BALWIN(BWN)Balwin Properties (BWN) is a developer of secure sectional title properties in South Africa. The company is now turning its attention to renting out some of the properties that it develops to improve its income. The company reports strong demand for its units and is also moving into supplying solar power and internet fibre. The share was listed 5 years ago at R10 per share but trades today for 270c. Obviously, the property development market is a function of consumers' disposable income and the state of the economy. The last three years have been very tough for consumers, and the economy has been in a full-blown recession. In our view, the move to rental is a good one as it will build up a passive income which can be used to meet fixed overheads and contribute to profits. Balwin owns 25% of Balwin Rental, which has the right to buy as many as 4,544 units developed by Balwin. This should help to stabilize the company's income. Eventually, it is expected that Balwin Rentals will be listed. On 4th October 2020, the company launched its Mooikloof Mega City construction project as a R44bn public/private partnership aimed at middle-income South Africans who earn between R3,500 and R22,000 a month (known as the "gap housing market"). This caused the share to rise by 13%. In its results for the year to 29th February 2024, the company reported revenue down 29% and headline earnings per share (HEPS) down 48%. The company's net asset value (NAV) increased 4% to 858.49c per share. The company said, "The annuity business portfolio experienced strong growth off a low base and increased its revenue to R132.5 million, contributing 5.6% (2023: 2.3%) to the total group revenue." The group ended the period with a loan-to-value (LTV) of 40.5%. In a voluntary update on 24th July 2024, the company stated its intention to increase its rental portfolio up to 7,300 units over the next 8 to 10 years. This is seen as complementing its build capacity of 2,000 to 3,000 units per annum. In a trading statement for the six months to 31st August 2024, the company estimated that HEPS would fall by between 54% and 59%. The company said, "Activity in the residential property sector remained under significant pressure during the interim period owing predominantly to the prolonged high-interest rate environment." Technically, the share has been in a long-term downward trend, and we advise waiting for it to break up through its downward trendline before investigating further. That appears to be in the process of happening (27-9-24). We believe it will recover as the economy recovers. It is trading for 25% of its net asset value (NAV) - which looks really cheap.
JSE:BWN
by PDSnetSA
Our opinion on the current state of BALWIN(BWN)Balwin Properties (BWN) is a South African developer of secure sectional title properties. Recently, the company has shifted some focus towards renting out the properties it develops to diversify and enhance its income streams. Despite strong demand for its units, the company has expanded into providing solar power and internet fibre solutions. When listed five years ago at R10 per share, Balwin’s share price has since dropped to 270c. The property development market is heavily influenced by the state of the economy and consumers' disposable income, both of which have been under strain, particularly during the economic recession of the last three years. Balwin’s decision to increase its rental portfolio is viewed positively, as this will build passive income streams, which can help cover fixed overheads and contribute to profitability. The company owns 25% of Balwin Rental, which holds the right to acquire as many as 4,544 units developed by Balwin, a move that should help stabilize income. There are expectations that Balwin Rentals will eventually be listed separately. On 4th October 2020, Balwin launched its Mooikloof Mega City construction project, a R44 billion public-private partnership aimed at middle-income South Africans earning between R3,500 and R22,000 per month, often referred to as the "gap housing market." This caused the share price to jump by 13%. In its results for the year ending 29th February 2024, Balwin reported a 29% drop in revenue and a 48% decline in headline earnings per share (HEPS). Despite the challenges, the company’s net asset value (NAV) increased by 4% to 858.49c per share. The company noted that its annuity business portfolio saw strong growth, increasing its revenue to R132.5 million, which contributed 5.6% of the total group revenue, up from 2.3% in 2023. The group finished the period with a loan-to-value (LTV) ratio of 40.5%. In a voluntary update on 24th July 2024, Balwin announced plans to expand its rental portfolio to 7,300 units over the next 8 to 10 years, complementing its build capacity of 2,000 to 3,000 units per annum. However, in a trading statement for the six months ending 31st August 2024, the company estimated a HEPS decline of between 54% and 59%, citing ongoing pressure in the residential property sector due to high interest rates. Technically, Balwin’s share has been in a long-term downward trend. We recommend waiting for a break above this downward trendline before considering further investment. Despite its current challenges, the share is trading at 25% of its net asset value (NAV), which suggests it is significantly undervalued and could present a strong recovery opportunity as the broader economy improves.
JSE:BWN
by PDSnetSA
Our opinion on the current state of BALWIN(BWN)Balwin Properties (BWN) is a developer of secure sectional title properties in South Africa. The company is now turning its attention to renting out some of the properties that it develops to improve its income. The company reports strong demand for its units and is also moving into supplying solar power and internet fibre. The share was listed 5 years ago at R10 per share but trades today for 270c. Obviously, the property development market is a function of consumers' disposable income and the state of the economy. The last three years have been very tough for consumers and the economy has been in a full-blown recession. In our view, the move to rental is a good one as it will build up a passive income which can be used to meet fixed overheads and contribute to profits. Balwin owns 25% of Balwin Rental which has the right to buy as many as 4544 units developed by Balwin. This should help to stabilise the company's income. Eventually, it is expected that Balwin Rentals will be listed. On 4th October 2020, the company launched its Mooikloof Mega City construction project as a R44bn public/private partnership aimed at middle-income South Africans who earn between R3500 and R22000 a month (known as the "gap housing market"). This caused the share to rise by 13%. In its results for the year to 29th February 2024, the company reported revenue down 29% and headline earnings per share (HEPS) down 48%. The company's net asset value (NAV) increased 4% to 858,49c per share. The company said, "The annuity business portfolio experienced strong growth off a low base and increased its revenue to R132.5 million, contributing 5.6% (2023: 2.3%) to the total group revenue." The group ended the period with a loan-to-value (LTV) of 40,5%. In a voluntary update on 24th July 2024, the company stated its intention to increase its rental portfolio up to 7300 units over the next 8 to 10 years. This is seen as complementing its build capacity of 2000 to 3000 units per annum. Technically, the share has been in a long-term downward trend and we advise waiting for it to break up through its downward trendline before investigating further. We believe it will recover as the economy recovers. It is trading for 22,7% of its net asset value (NAV) - which looks really cheap.
JSE:BWN
by PDSnetSA
$JSEBWN - Balwin Properties: New All Time Low LoomingSee link below for previous analysis. The previous analysis was quickly invalidated; this is why we use stop-losses! The stock has been trending downwards for over three years now and looks likely to set a new all time low below 128. A break above the upper resistance trendline would give an early signal for a potential reversal but there is no sign of bullishness yet. I will remain short until I get contrary evidence.
JSE:BWNShort
by Loyiso_BlaqueSoros_Mpeta
Our opinion on the current state of BWNBalwin Properties (BWN) is a developer of secure sectional title properties in South Africa. The company is now turning its attention to renting out some of the properties that it develops to improve its income. The company reports strong demand for its units and is also moving into supplying solar power and internet fibre. The share was listed 5 years ago at R10 per share but trades today for 270c. Obviously, the property development market is a function of consumers' disposable income and the state of the economy. The last three years have been very tough for consumers and the economy has been a full-blown recession. In our view, the move to rental is a good one as it will build up a passive income which can be used to meet fixed overheads and contribute to profits. Balwin owns 25% of Balwin Rental which has the right to buy as many as 4544 units developed by Balwin. This should help to stabilise the company's income. Eventually, it is expected that Balwin Rentals will be listed. On 4th October 2020, the company launched its Mooikloof Mega City construction project as a R44bn public/private partnership aimed at middle income South Africans who earn between R3500 and R22000 a month (known as the "gap housing market"). This caused the share to rise by 13%. In its results for the six months to 31st August 2023 the company reported revenue down 25% and headline earnings per share (HEPS) up 4%. The company's net asset value (NAV) increased 10% to 849,16c per share. The company said, "Group revenue for the reporting period amounted to R1.2 billion (H12023: R1.6 billion), a reduction of 25% over the prior comparative period, reflecting the challenging conditions in the residential housing market. As a result of ongoing macro-economic headwinds and reduced consumer demand, Balwin recognised 834 apartments in revenue for the period, a 39% reduction from the 1 360 apartments recognised in revenue for the prior comparative six- month period". Technically, the share has been in a long-term downward trend, but now looks to be moving up based on the most recent results. We believe it will continue to recover as the economy recovers. It is trading for 27,3% of its net asset value (NAV) - which looks really cheap.
JSE:BWN
by PDSnetSA
$JSEBWN - Balwin Properties: Short-Term BullishSince reaching a peak of R5,34 in January 2021, BWN has has been in a correction. The correction started to lose downside momentum from July 2021 as the MACD started turning up even though price continued to trend downwards. Price action was also contained in a falling wedge, which is a bullish continuation pattern, and has subsequently broken out of it. The MACD has recently broken and held above the zero line, further adding to my bullish sentiment. enter @ market stop-loss @ R2,36 Take-profit @ R5,34
JSE:BWNLong
by Loyiso_BlaqueSoros_Mpeta