HongKong Land - Recentralisation To Drive Better Operations
- Since its announcement of a share buyback programme, Hongkong Land's share price is up 30%. 18% of its total repurchase budget has been used as of 1 Nov.
- Central office rents are back at pre-financial crisis levels; we believe they are attractive enough for large corporations to return, leading to “recentralisation”.
- We believe its Central office vacancy reached a short-term peak, and could moderate as borders reopen over the next 6-9 months.
- Reiterate ADD call on Hongkong Land (SGX:H78) with a higher target price of US$6.30, based on a narrowed 40% discount to NAV.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
Raymond CHENG CFA CGS-CIMB Research | Will CHU CFA CGS-CIMB Research | Steven MAK CGS-CIMB Research | https://www.cgs-cimb.com 2021-11-02 2021-11-02
Read also CGS-CIMB's most recent report:
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