Hong Kong-headquartered conglomerate Jardine Matheson Holdings has agreed to acquire the remaining 11.96% stake that it does not already own in Mandarin Oriental. The company is offering $3.35 for each Mandarin Oriental share, including $2.75 in cash and a special dividend of $0.60 per share in cash (OCB dividend). On 17 October, Mandarin Oriental also entered an agreement with Alibaba Group and Ant Group. Under this agreement, Alibaba and Ant will acquire the top 13 floors of One Causeway Bay mixed-use ...

Core Insights - Toll Brothers (TOL) and D.R. Horton (DHI) are leading U.S. homebuilders with different market focuses, with TOL specializing in luxury homes and DHI dominating the entry-level and affordable housing segment [1][9] - Both companies have shown solid performance despite high mortgage rates and cautious consumer sentiment, with their stocks rallying sharply in recent months [2][14] - A comparison of the fundamentals of TOL and DHI is essential to determine the better investment opportunity [3] Toll Brothers Overview - Toll Brothers has maintained steady momentum due to its luxury niche, with 26% of buyers in the fiscal third quarter paying cash and financed buyers averaging a 70% loan-to-value ratio [4][6] - The average selling prices (ASPs) exceed $1 million, with backlog ASP at $1.16 million, providing stability amid fluctuating housing demand [4][6] - A strategic shift to a 50/50 mix of spec and build-to-order homes has improved flexibility, with 3,200 spec homes under construction and 1,800 permits in hand [5] - Backlog support includes 5,492 homes valued at $6.4 billion, with plans to increase active communities from 420 to 440-450 by year-end [6] - The balance sheet is stable, with a net debt-to-capital ratio of 19.3%, $852 million in cash, and $2.2 billion in available credit [7] D.R. Horton Overview - D.R. Horton benefits from unmatched scale, operating in 36 states and over 120 markets, which provides cost advantages and better lot control [9][10] - The company closed 23,160 homes in the fiscal third quarter, achieving a gross margin of 21.8% while maintaining a low cancellation rate [11] - D.R. Horton has increased its community count by 12% year-over-year and introduced smaller homes to meet affordability needs [11][12] - The company has a strong liquidity position of $5.5 billion and a leverage ratio of 23.2%, with a book value per share of $80.46 [12] Share Price Performance - TOL stock has increased by approximately 11% year-to-date, while DHI stock has risen about 20.4%, outperforming both the industry and the S&P 500 index [14] - In the last three months, DHI stock surged roughly 30.8%, compared to TOL's rally of 24.2% [14] Valuation and Earnings Estimates - TOL's forward 12-month P/E ratio is 9.96, lower than DHI's 13.98, indicating a premium for DHI due to its market leadership [18] - The Zacks Consensus Estimate for TOL's fiscal 2025 EPS has decreased to $13.82, reflecting a 7.9% decline from the previous year [20] - Conversely, DHI's fiscal 2025 EPS estimate has increased to $11.79, indicating a positive shift in sentiment despite a 17.8% year-over-year decline [22] Investment Outlook - While both companies have shown resilience, the near-term risk-reward appears more favorable for Toll Brothers due to its affluent customer base and pricing strength [25][26] - D.R. Horton's reliance on incentives and shrinking ASPs may temper its upside in the current market [26][27] - Toll Brothers is better positioned to capture incremental gains as mortgage rates ease and demand stabilizes, offering stronger near-term upside potential compared to D.R. Horton [27]

Group 1 - The Federal Reserve's recent interest rate cut has led to lower mortgage rates, positively impacting housing activity after a prolonged period of high borrowing costs [1][8] - Toll Brothers, a leading luxury home builder, is positioned to benefit from declining rates, potentially reducing financing incentives and improving profitability [2][7] - The company's third quarter of fiscal 2025 showed a 6% year-over-year revenue increase to $2.88 billion, with earnings per share rising to $3.73, supported by cost management and buybacks [4][6] Group 2 - Toll Brothers reported steady order values at $2.41 billion, although unit sales decreased by 4%, indicating a focus on price stability [5] - The backlog at the end of the quarter was $6.38 billion, down 10% year over year, as the company continued to convert orders into deliveries [5] - The company returned $226 million to shareholders through buybacks and dividends, reflecting management's confidence in long-term performance [6] Group 3 - The company maintains full-year guidance of approximately 11,200 deliveries and an adjusted home-sales gross margin in the high 27% range, suggesting a strong outlook if demand improves [7] - Shares of Toll Brothers are trading at 10 times earnings, indicating potential for upside if demand trends enhance [8]

Economic Overview - The housing market is cooling down due to high interest rates, which lead to elevated mortgage rates [1] - Housing Starts for August were reported at 1.307 million seasonally adjusted annualized units, marking a decrease from 1.429 million in July, the lowest since May [2] - Single-family homebuilding decreased by 7% month over month and 12% year over year, while multi-family units fell by 11% month over month but increased by 15% year over year [3] Mortgage Rates and Homebuilder Sentiment - As of mid-last month, 30-year fixed mortgage rates were around 6.5%, currently down to approximately 6.13%, which may lead to a rebound in housing starts [4] - Building Permits also declined to 1.312 million, indicating a softening in future housing starts [5] - Homebuilder sentiment dropped by 2 points, with affordability being a significant concern; Toll Brothers remains the only major homebuilder with a strong outlook [6] Federal Reserve Expectations - The Federal Reserve is expected to cut interest rates for the first time in 2025, with a potential 25 basis-point cut anticipated [7][8] - Fed Chair Jerome Powell's press conference will be crucial for insights on future rate cuts and the Fed's strategy moving forward [9] - There may be discussions regarding the Fed's asset runoff, particularly concerning mortgage-based securities, to support the housing market [10]

Core Viewpoint - Toll Brothers, Inc. has experienced a significant stock rally, outperforming both its peers and the broader market, driven by strong fundamentals in the luxury homebuilding segment and effective operational strategies [1][5][21] Performance Overview - The stock has risen 29.3% over the past three months, exceeding the gains of the Zacks Building Products – Home Builders industry (27.9%), the Zacks Construction sector (11.3%), and the S&P 500 (8.6%) [1] - As of September 9, 2025, the stock price is $144.82, which is 14.6% below its 52-week high of $169.52 but represents a 67.1% premium to its 52-week low of $86.67 [2] Technical Analysis - The stock's current price is above both its 50-day simple moving average (SMA) of $127.43 and its 200-day SMA of $120.02, indicating a bullish trend [3] - Recent trading volume has been strong, with over 2.3 million shares traded, suggesting institutional interest [3] Driving Factors - Toll Brothers has a strong position in the luxury homebuilding market, with an average selling price (ASP) of $974,000 and a backlog averaging $1.16 million per home, indicating customer willingness to pay premiums [6][7] - The company has a robust land pipeline with 76,800 lots, 57% of which are controlled, and plans to increase its community count from 420 to 440-450 by year-end [7] - A balanced approach of 50% spec homes and 50% build-to-order homes has provided strategic flexibility and contributed to an adjusted gross margin of 27.5% in Q3 [8][9] Financial Strength - Toll Brothers ended Q3 with $852 million in cash and a net debt-to-capital ratio of 19.3%, highlighting its strong financial position [10] - The company returned $226 million to shareholders through dividends and buybacks and plans to repurchase $600 million of stock in fiscal 2025 [10] Challenges - Despite record revenues, net contracts fell 4% year-over-year, indicating a softer housing market [11] - Incentives for new contracts have increased to an average of 8%, reflecting pressure on margins [13] - Gross margins have decreased from 28.8% to 27.5%, influenced by higher incentives and market pressures [14] Market Conditions - Elevated mortgage rates around 6.5% continue to constrain affordability for many buyers, impacting sales decisions [16] - Broader economic uncertainty and inflationary pressures may affect consumer sentiment and demand [16] Valuation - Toll Brothers is trading at a forward 12-month P/E of 10.34X, below the industry average of 13.35X, suggesting it is undervalued relative to peers [18][19] - The stock's current pricing indicates potential for upside if fundamentals remain strong [18] Conclusion - Toll Brothers has shown strong performance driven by luxury market strength and operational efficiency, but faces challenges from softer sales volumes and margin pressures [21] - The company remains a stable investment within the homebuilder sector, with a Zacks Rank 3 (Hold), and should be monitored for future demand trends [21]

Summary of the Conference Call on China Property Sector Industry Overview - The conference call focused on the **China Property** sector, particularly the luxury home market and the performance of top-10 cities in 1H25 - Key trends indicate a shift towards recurring business operations and improving margins in the sector Core Insights and Arguments 1. **Sales Performance**: - Sales in top-10 cities increased by **4% year-on-year (yoy)**, contrasting with a **17% decline** in the overall sector [1][24] - Luxury home sales (priced over **Rmb10 million**) rose by **19% yoy** [1][30] - New sales gross profit margin (GPM) improved to **13-18%** from **12%** in 1H24 [3][33] 2. **Land Acquisition**: - **82%** of land purchases were concentrated in top-10 cities, indicating a strategic focus on core urban areas [4][27] - State-owned enterprises (SOEs) were particularly active, with land acquisitions up **120% yoy** in 1H25 [4] 3. **Financial Health**: - The sector reported a core loss of **Rmb69 billion** in 1H25, with mixed margins; GPM improved to **12.2%** but net profit margin (NPM) eroded to **-7%** [6] - Companies like **COLI** and **Poly** were the top land acquirers, indicating strong market positioning [3] 4. **Recurring Business Focus**: - Companies such as **COLI**, **SZI**, and **Jinmao** are shifting focus towards rentals and services, aiming for **10% rental growth** in FY25 [2] - Recurring profits for **CRL** and **Longfor** are projected to reach **Rmb12 billion** and **Rmb8 billion** respectively in FY25 [2] 5. **Policy Environment**: - Local governments are accelerating policy execution to stabilize the property market, including easing purchase restrictions in cities like **Shanghai** and **Beijing** [7][42] - The State Council has called for measures to solidify the stabilizing trend of the property market, emphasizing urban renewal [46] Additional Important Points 1. **Inventory Levels**: - Inventory of properties held for sale decreased by **3%** in 1H25, indicating a gradual reduction in excess supply [36] - The overall new home inventory area in key cities was down **17%** compared to historical highs [36] 2. **Market Outlook**: - The sector is expected to see a gradual recovery, particularly in top-10 cities, with **2-3 more cities** showing signs of recovery in 2H25 [23] - The anticipated sector correction in September is viewed as an opportunity to invest in quality property names [1] 3. **Top Picks**: - Recommended stocks include **Jinmao**, **C&D**, and **CR Land** for their strong market positions and growth potential [20][45] 4. **Challenges**: - Companies facing restructuring or significant asset write-downs are underperforming, highlighting the risks associated with the sector [12] 5. **Investment Strategy**: - Focus on luxury and quality products with active land purchases is recommended for partial recovery before earnings scale and return on equity (ROE) improve in 2H25 [14] This summary encapsulates the key points discussed in the conference call regarding the China Property sector, highlighting both opportunities and risks for investors.

Core Viewpoint - Toll Brothers has experienced a significant stock rebound, driven by a strong performance in the luxury housing market and a less interest-sensitive affluent customer base [1][2]. Financial Performance - Toll Brothers reported record Q3 sales of $2.94 billion, surpassing estimates of $2.85 billion, and reflecting an 8% increase from $2.72 billion a year ago [4]. - Q3 earnings per share (EPS) were $3.73, up from $3.60 in the same quarter last year, exceeding expectations of $3.59 by nearly 4% [4]. - The company delivered 2,959 homes at an average price of $974,000, achieving an adjusted gross margin of 27.5% [6]. Market Position and Strategy - Despite a softer overall housing market, Toll Brothers attributes its strong results to a balanced operating model and a diversified luxury business strategy that prioritizes price and margin over sales pace [5]. - The company signed 2,388 net contracts worth $2.4 billion during Q3, resulting in a total backlog of 5,492 homes valued at $6.37 billion, with an average sales price of $1.16 million [7]. Guidance and Future Outlook - Toll Brothers expects to deliver approximately 11,200 homes for the full year, at the lower end of its previous guidance range [7]. - The company maintained its full-year adjusted gross margin forecast at 27.25% and expects other income from unconsolidated entities and land sales gross profit of $110 million [8]. Valuation Metrics - TOL shares trade at 9.4X forward earnings, which is below the Zacks Building Products-Home Builders Industry average of 12.4X, indicating a potential investment opportunity [9]. - The stock is also trading well under the preferred level of less than 2X sales [9]. Dividend Information - Toll Brothers has increased its dividend for five consecutive years, with an annualized growth rate of 16.31% [11]. - The current annual yield is 0.76%, which is below the S&P 500 average of 1.16%, but the 7% payout ratio suggests room for future increases [11]. Overall Assessment - Toll Brothers appears well-positioned to navigate the housing market slowdown due to its luxury clientele, although it faces challenges in a tougher operating environment [12].

Toll Brothers at Tesoro Highlands Valencia, CA FORT WASHINGTON, Pa., Aug. 19, 2025 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (TollBrothers.com), the nation’s leading builder of luxury homes, today announced results for its third quarter ended July 31, 2025. FY 2025’s Third Quarter Financial Highlights (Compared to FY 2024’s Third Quarter): Net income and earnings per share were $369.6 million and $3.73 per diluted share, compared to net income of $374.6 million and $3.60 per diluted share in FY ...

Core Insights - Toll Brothers, Inc. is scheduled to report its third-quarter fiscal 2025 results on August 19, 2025, with a focus on maintaining strong margins and steady deliveries in a challenging housing market [1] Financial Performance - The company achieved a record fiscal second quarter with earnings per share of $3.50, exceeding estimates by 22.4% and showing a year-over-year increase of 3.6% [2] - Revenue for the second quarter was $2.74 billion, surpassing consensus by 9.5% and reflecting a 2.3% year-over-year growth [2] - Home deliveries totaled 2,899 units at an average price of $934,000, with a gross margin of 27.5% and SG&A expenses at 9.5% of sales, both exceeding guidance [2] - Despite a 13% decline in net signed contracts due to economic uncertainty, the backlog remains strong at $6.84 billion [2] Future Estimates - The Zacks Consensus Estimate for the fiscal third-quarter earnings per share is $3.59, indicating a slight decline from the previous year's EPS of $3.60 [4] - Revenue for the third quarter is estimated at $2.85 billion, suggesting a 4.6% year-over-year increase [4] - For fiscal 2025, revenues are expected to increase by 0.8%, while the bottom line is projected to decline by 7.1% [5] Guidance for Q3 2025 - Toll Brothers anticipates home deliveries between 2,800 and 3,000 units at an average selling price of $965,000 to $985,000 [7] - The company expects adjusted gross margin to be 27.25%, slightly below the previous year's margin of 28.8% [8] - SG&A expenses are projected to be 9.2% of home sales revenue, up from 9% in the same quarter last year [9] Market Position and Customer Base - The company serves a financially resilient customer base, with over 70% of its business targeting move-up and empty-nester segments [10] - More than 24% of buyers in the second quarter paid in cash, with an average loan-to-value ratio of 70% [10] - Toll Brothers operates in over 60 markets across 24 states, offering a diverse range of homes priced from $300,000 to over $5 million [11] Challenges and Risks - The company faces challenges such as declining consumer confidence, with net signed contracts down significantly year-over-year [12] - Increased incentives to support sales may pressure margins, with current incentives at about 7% of the average selling price [12] - The need to sell and close 1,900 spec homes in the second half of the year poses a risk to meeting delivery guidance [12] Stock Performance and Valuation - Toll Brothers stock has risen 23% over the past three months, outperforming some peers in the homebuilding industry [16] - The stock is currently trading at a discount to its industry in terms of forward price/earnings ratios [20] - The company holds a Zacks Rank of 3, indicating a hold recommendation, with limited near-term upside due to current earnings estimates [15][23]

Core Points - Toll Brothers, Inc. has received multiple awards for its New Jersey division, including the prestigious Townhome Community of the Year for Middletown Walk [1][4] - The awards were presented at the Sales and Marketing Awards (SAM) and the Fabulous Achievements in Marketing Excellence (FAME) Awards, recognizing significant contributions to the home building industry [2][3] - The company has been acknowledged for excellence in various categories, including design, marketing, and sales achievements [2][5] Awards Summary - **SAM Awards**: Toll Brothers won several categories, showcasing their leadership in home building [2] - **FAME Awards**: 14 sales representatives were recognized for their professional sales achievements, earning Million Dollar Club honors [3] - **Specific Awards**: Notable awards include Grand Award, Best Design Center, Best Sales Office, and multiple awards for Middletown Walk in various categories [5] Company Overview - Toll Brothers, Inc. is a Fortune 500 Company and the leading builder of luxury homes in the United States, founded in 1967 and publicly traded since 1986 [8] - The company operates in over 60 markets across 24 states and offers a wide range of housing options for various buyer segments [8] - Toll Brothers has been recognized as one of Fortune magazine's World's Most Admired Companies for over 10 years and has received multiple accolades for its leadership and quality in the industry [9]