Hongkong Land

Re: Hongkong Land

Postby winston » Fri Jul 29, 2011 8:45 am

Not vested

Property developer Hongkong Land said its net profit in the first half of the year more than doubled to $3.8 billion from $1.6 billion a year ago, helped by a higher revaluation gain.


Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Fri Jul 29, 2011 2:27 pm

Not vested

WHAT’S THE STORY?


Event: Hongkong Land (HKL) announced its FY11 interim results on Jul 28.

Although its underlying net profit fell 23.4% YoY to US$365.3m due to lower profits to be booked from residential projects, this represents about 53% of consensus estimates and 49% of our estimate for full-year 2011.

Its book value rose 16.7% HoH to a historically high level of US$10.08/share.


Impact: We believe HKL will maintain its strong bargaining power to raise rentals in Hong Kong in 2H11, given the ultra-low vacancy rate of its office portfolio at only 2.5%.

The surging book value in 1H11 results in a more attractive share price in terms of valuation.

The current low gearing ratio at 9.3% should also help the company to acquire more land bank in 2H11.


Action: HKL’s shares are now trading at a P/B ratio of 0.66x (vs 0.76x historically).

We reiterate our BUY★★★ rating on HKL and our target price of US$9.25, based on 15% discount to our end-FY11 NAV estimate of HK$10.89/share.

Source: Samsung
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Mon Aug 01, 2011 5:20 pm

Not vested

PT of US$8.32, maintain Overweight: Our Jun-12 PT of US$8.32 is based on a 20% discount to our Jun-12 NAV of US$10.4 per share, which is half a standard deviation above the long-term average.

The stock is trading at an undemanding valuation of 0.66x current P/BV, in our opinion. We think that there is low downside risk in BV for the next reporting period which should give support to the share price.

Risks to our PT include lower-than-expected rental growth and a sudden rise in interest rates.

Source: JPM
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Mon Aug 01, 2011 5:21 pm

Not vested

Valuation Methodology and Investment Risks: Our US$9.40 price target is based on a 15% discount to Hongkong Land’s end-2011F NAV of US$11.09, representing 1x standard deviation above HKL’s historical average level, compared with the stock’s up-cycle discount of 25% and mid-cycle discount of 29%.

Risks: Should the Hong Kong economy expand more slowly/strongly than we expect, this could mean a slower/faster growth in Central office rents in 2011-12F.

With 71% of its NAV attributable to its Central office portfolio, we estimate that every 10% change in office prices would move its NAV by 7.1%.

Separately, downward rental pressure could arise should selected Central landlords, who face vacancy pressure in office blocks, cut rents in an attempt to incentivize office leasing, leading to weaker-than-expected Central rents.

Source: Nomura
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Tue Sep 13, 2011 8:50 am

Not vested. How can a revision to the TP be so big ?

RESEARCH ALERT - JPMorgan cuts Hongkong Land to underweight

SINGAPORE, Sept 13 (Reuters) - JPMorgan has downgraded Singapore-listed property developer Hongkong Land to underweight from overweight and cut its target price to $4.60 from $8.32.

STATEMENT: JPMorgan has revised its ratings for Hongkong Land as it expects demand for office space in Hong Kong's central areas to slow and rents to fall in 2012.

"Previously, we were positive on the office rental outlook in the tight supply situation, but as a few financial institutions are planning to cut staff globally and IPO activities are slowing down, we expect office rents to decline in 2012," said JPMorgan in a report.

( So you were wrong in the first place )

The brokerage has also cut its 2012 earnings estimates by 7 percent and by 9 percent for 2013.

Hongkong Land's shares have fallen 25.7 percent since the start of the year to close at $5.36 on Monday.


Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Thu Sep 22, 2011 11:41 am

Not vested

Downgrading to Sell on expectation of weakening HK Office market ahead

We downgrade Hongkong Land to Sell from Hold on expectation of a weakening Hong Kong Grade-A office market.

With corporate hiring expectations turning cautious in light of a deteriorating macro environment, we believe rents in the Hong Kong office market have peaked and are now heading into a downturn phase.

While we expect the imminent impact on passing rents to be relatively mild
in 2012, we see NAV coming under pressure on cap rate decompression.

We lower our NAV estimate to US$6.77/share and target price to US$4.4, accordingly.

Source: DB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Thu Oct 27, 2011 12:54 pm

not vested

Singapore Hot Stocks-Hongkong Land surges on Europe optimism

SINGAPORE, Oct 27 (Reuters) - Shares of Singapore-listed property developer Hongkong Land Holdings Ltd surged as much as 5 percent to a week high, after progress in resolving Europe's debt crisis lifted optimism, that demand for office space may be better than expected.

At 0245 GMT, Hongkong Land shares were 4.6 percent higher at S$5.02 with a volume of 1.3 million shares.

Shares of Hongkong Land, which owns mainly prime office assets in Hong Kong's central area, had taken a beating in the last few weeks, on concerns a slow down in the global economy will affect companies' hiring plans and lower demand for office space.

"With a clearer solution to the European crisis, there may be an improvement in sentiment about the global economy.

The supply of office space in Hong Kong's central area remains tight and if companies do not aggressively cut head count, office landlords may not be as badly affected as people had expected," said an analyst.

Euro zone leaders said on Thursday they had reached agreement on a comprehensive package of measures to tackle the euro zone's sovereign debt crisis.

Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Fri Jul 27, 2012 10:32 am

not vested

Downgrade to SELL.

In the 2008 financial crisis, HK Land troughed at 0.3x P/B, below mean less 2SD, and in last year's euro zone debt crisis, it fell to 0.42x P/B, below mean less 1SD.

With the global financial market still unstable, the risk is on the downside.

We peg our target price at mean less 1SD P/B of 0.5x to current BV of US$10.77 (instead of a lower forward BV so that we will not be seen to be overly conservative)

Source: UOBKH
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Thu Jul 31, 2014 9:12 pm

not vested

Hongkong Land's underlying profit slips 17% to $541 million

SINGAPORE - Hongkong Land reported a 17 per cent drop in underlying net profit to US$433 million (S$541 million) for the first half year, mainly due to lack of residential development completions in Singapore.

The company considers underlying net profit, which distinguishes between ongoing business performance and non-trading items, to be a better measure of its business performance than net profit.

Net profit for the six months to June 30 fell by 6 per cent to US$563 million.

Revenue fell by 34 per centto US$602 million, with a sharp plunge in sale of trading properties overwhelming gains in rental and service incomes.cent

Source: Straits Times
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Fri Aug 15, 2014 6:19 am

not vested

[b]Would Warren Buffett Buy Hongkong Land Holdings Limited?[/b] By David Kuo

As unlikely as it might sound, Warren Buffett is not against investing in bricks and mortar.

However, he strongly advises against buying real estate for speculation purposes. He urges investors to think carefully about what the physical asset is capable of producing rather than where we believe property prices are going. In his view, focussing on the former is investing, while an obsession of the latter is speculation.

So what would Warren Buffett make of Hongkong Land Holdings Limited (SGX: H78)?

Hongkong Land is one of Asia’s leading property developers. It has a market value of around S$20b, which makes it a larger than CapitaLand (SGX: C31) and City Developments (SGX: C09).

Hongkong Land is profitable. That said, the property developer’s bottom-line profits can be disproportionately affected by changes in the fair value of its properties. Over the last five years, Hongkong Land’s Net Income has fluctuated between S$1.5b and S$6b.

Interestingly, the company’s dividends tend to be remarkably stable. Since 2008, it has paid around S$0.21 a share in dividends every year. This only represents about a third of profits, which suggests that the company retains a hefty chunk of earnings for growing the business. The current dividend yield is an unspectacular 2.8%.

Hongkong Land is a capital intensive business. Consequently, its efficiency as measured by its Asset Turnover is not especially high. It only generates $5.70 for every $100 of asset employed in the business. By comparison, the average for the Singapore market is some ten times higher.

The property developer, unsurprisingly, uses debt. That said, its Leverage ratio of 1.2 is not worryingly high. That could help explain its relatively low share price volatility. Hongkong Land is also trading at a discount to its book value. At the current share price of US$6.88, Hongkong Land is valued at 60% of its Net Assets of S$33b.

There are lots to like about Hongkong Land. There are a few negatives to bear in mind too. As to what Warren Buffett might make of the company, the heavy discount to book could be a persuasive deal-clincher.

Source: Motley Fool

http://www.fool.sg/2014/08/14/would-war ... s-limited/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to H to K

Who is online

Users browsing this forum: No registered users and 5 guests

cron