- In Oct-24, Hongkong Land's Chief Executive Michael Smith unveiled its new corporate strategy, aiming to simplify its business with a focus on investment properties (IP) in Asia’s gateway cities. The company expects to expand IP AUM to US$100bn by 2035.
Scaling down development business.
- - Read this at SGinvestors.io -
- In the past 10 years, development profits, primarily from China and Singapore, had made up more than 30% of Hongkong Land’s underlying profits in some years. However, development profits are erratic in nature, which has led to higher earnings volatility.
- - Read this at SGinvestors.io -
- As of Jun-24, Hongkong Land has development land of 1.96msm, 0.14msm and 2.2msm in China, Singapore and Rest of Asia in terms of attributable GFA with carrying value of US$7.7bn. We believe it could take some years to wind down its build-to-sell business.
Portfolio recycling needed for expansion and to enhance shareholder returns.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Jeff YAU CFA DBS Group Research | Percy Leung DBS Group Research | Cherie Wong DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-10-30
Previous report by DBS:
2024-08-02 Hongkong Land - Dragged By Property Write-downs; All Eyes On Strategic Review.
Price targets by other brokers at Hongkong Land Target Prices.
Listing of research reports at Hongkong Land Analyst Reports.
Relevant links:
Hongkong Land Share Price History,
Hongkong Land Announcements,
Hongkong Land Dividends & Corporate Actions,
Hongkong Land News Articles
