CHVKY - Country Garden Holdings - A Wager On China's Tier 3 And 4 Cities

Source: Company data, Prevalence Value Capital estimates.

As with our usual analysis in making an equity investment decision, we need to have a strong understanding of the underlying investment. In this case, we are making an argument for an equity investment in Country Garden Holdings Limited (“Country Garden” or the “Company”). We are then theoretically buying the present value of the residual cash flow streams attributable to equity holders of Country Garden. The underlying business is the key determinant of the future cash flow streams to be generated by this investment as well as the