Hongkong Land

Re: Hongkong Land

Postby winston » Fri Feb 06, 2015 8:12 pm

Here Is Why HongKong Land Holdings Limited Might Interest You

As part of the Jardine Group of companies, HongKong Land Holdings is 50.01% owned by Jardine Strategic Holdings Limited (SGX: J37).

The business

HongKong Land is more of a property investment outfit rather than a property developer.

Although the firm does have a strong property development business (which focuses on developing high-end residential projects in Greater China and Southeast Asia), the main attractiveness of the company lies with its valuable investment holdings of “grade A” commercial properties across Asia.

For instance, HongKong Land owns 12 highly valuable commercial buildings in the Cheung Wan (also known as Central) region of Hong Kong. Cheung Wan is actually Hong Kong’s Central Business District and HongKong Land’s property portfolio in that area enjoy low vacancy rates (6% at end-June 2014) and has been experiencing stable growth in rents (HongKong Land’s Central portfolio has seen the average office effective rent jump from US$4.04 per sq feet per month in 2004 to US$12.70 in 2013).

The company’s properties in Hong Kong are valued at US$22.3 billion as of the first half of 2014 and that makes up almost 80% of the overall value of the firm’s investment property portfolio.

The next big chunk in the investment property portfolio comes from Singapore, where HongKong Land has interests (either partial or full) in the following top-grade properties: One Raffles Link, One Raffles Quay, and Marina Bay Financial Centre. These three properties also have high rental rates and low vacancies.

All told, the ownership of commercial properties for investment is such a big segment for HongKong Land that it contributed roughly half of the company’s revenue and 72% of underlying operating profit in 2013.

Interestingly, HongKong Land Holdings has been generating free cash flow over the past five years (except for 2012) and this has given the firm the ability to pay out a consistent dividend.

Year Dividend per share (US cents)
2009 16
2010 16
2011 16
2012 17
2013 18
Source: S&P Capital IQ

Currently, the company has an annualised dividend yield of about 2.3%.

Foolish Summary

Hongkong Land Holdings seems to have many positive investment merits. It is one of the best commercial property owners in the region and has a consistent dividend payout backed by the production of free cash flow.

But, that does not mean an investment into HongKong Land would not come without risks. Hong Kong’s real estate market may have limited upside given that real estate prices there are high. On top of that, HongKong Land Holdings’ residential development business might be impacted if the slowdown in the property markets of China and Singapore continue as a result of the property cooling measures that have been enacted in the two countries.

Source: The Motley Fool
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: 100367
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Tue May 26, 2015 2:55 pm

not vested

Initiation: a durable and expanding franchise

• Strong exposure to Hong Kong’s Central commercial hub, which accounts for 76% of gross NAV
• Has built and maintained a franchise in Central, and is in the process of spreading to various major cities in Asia
• A play on any narrowing of the “Hong Kong discount”, in our view; initiate with a Buy (1) rating and TP of USD9.70

Valuation

Trading currently at a 42% discount to NAV (past-25-year average: 30%), HKL’s current valuation looks attractive, especially as we see much room for its NAV to be revised up.

As such, we initiate coverage with a Buy (1) rating and a 12-month TP of USD9.70, based on a 30% discount applied to our end-2015E NAV of USD13.90.

Source: Daiwa
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: 100367
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Sun May 31, 2015 9:32 pm

not vested

5 Quick Things Investors Should Learn About Hongkong Land Holdings Limited

By Hui Leong Chin

Hongkong Land Holdings Limited (SGX: H78) is one of the cool companies which shares its earnings webcast (the link is here).

Hongkong Land is a leading property investment, management, and development group with operations primarily in Hong Kong, Singapore, and mainland China. Its business can be segmented into the commercial office rental market and residential real estate development.


What’s the story?

Below are five useful things I learned from listening to Hongkong Land’s fourth quarter earnings webcast for the financial year 2014:

Hongkong Land celebrated its 125th anniversary year in 2014. The company closed the year with an attributable interest in more than 8 million square feet of property. By country, the largest commercial property space came from Hongkong (4.9 million square feet) while Singapore came in second with 1.8 million square feet. Meanwhile, the office segment made up close to 6.7 million square feet of space.

General vacancy for the Grade “A” office market in Central (Hong Kong) was 3.7% and is expected to be around this level over the next five years; this trend may support modest rental growth.

On another note, the Hong Kong Central Grade “A” Office Rental Index was relatively flat compared to last year, but was still down from its 2011 high. As a result, the vacancy level for Hongkong Land was 5.4% in 2014 as the company worked to renew its expiring leases from 2011. Y.K. Pang, Chief Executive Officer for Hongkong Land, acknowledged that Hongkong Land’s vacancy levels is higher than the general market, but emphasized the company’s focus on yield.

On the other hand, Hongkong land managed to keep a 0% year-end vacancy for its Central (Hong Kong) retail portfolio – even managing to bump up rental rates by 6% to HK$ 214 per square feet.

At the Singapore front, Hongkong Land’s stake includes a 100% ownership in One Raffles Link and a 33% stake each for One Raffles Quay and the Marina Bay Financial Center. Significant supply is expected to be added in 2016 for the Singapore Central Business District (CDB), possibly leading to higher vacancies in 2016.

Currently, vacancies for the Grade “A” office market at Singapore CDB area is 6.1%. Comparatively, Hongkong Land’s portfolio in Singapore had a vacancy level of just 1.7%.

Source: Motley Fool
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: 100367
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Tue Aug 02, 2016 8:10 am

not vested

Hongkong Land an undervalued office play

By Zavier Ong

SINGAPORE (Aug 1): DBS is maintaining its “buy” call for Hongkong Land with a target price of US$7.87 ($10.55).

Describing the stock as an “undervalued office play”, DBS analyst Jeff Yau says that the stock is trading at a 41% discount to its current Net Asset Value.

As of Jun 16, the group’s net order book stood at US$885 million. The group has net debt of US$2.3 billion, with a gearing level of 8%.

Yau remains positive on the stock, noting that leasing demand from Chinese firms has demonstrated no signs of subsiding, while the outlook on Central’s office market remains positive due to tight vacancy and limited new supply.

To recap, Hong Kong Land posted a 6% decline in underlying earnings to US$393 million ($527 million) in 1H16, thanks to a US$1.5 million write-back for MCL’s Singapore projects compared with a US$16 million write-back a year ago.

Office vacancy for the Central portfolio fell to 3.1% from 3.4% in Dec 15, while average rents rose to HK$103 psf ($17.80 psf). Average retail rent fell 1% to HK$216 psf from a year ago.

Vacancy in its Singapore office portfolio was 1% compared to 3% in Dec 15 as previously committed space was taken up during the period.

Attributable contracted sales in China rose 32% to US$432 million in 1H16. WF Central, a Beijing retail project, is scheduled to open in 1H17.

In Jakarta, work is continuing on the fifth tower at its 50%-owned Jakarta Land, which is on schedule for completion in 2018.

Shares of Hong Kong Land closed 1.9% lower at $6.28.

Source: The Edge
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: 100367
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Mon Sep 19, 2016 10:25 am

not vested

Among the Jardine subsidiaries, HKL is our top pick, with 28% TSR implied by David Ng’s US$8.40 price target.

Valuation remains attractive at 0.53x P/BV, we think (past average: 0.71x).

With ‘Central’ HK office rents still proving resilient, we do not think David’s target 0.66x P/BV multiple is aggressive.

Source: Macquarie
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: 100367
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Tue Sep 20, 2016 8:48 am

not vested

HongkongLand USD has been trading above its upward sloping 20-Day Moving Average which is a good sign.

In addition, the price just broke the resistance of 6.95 reinforcing the bullishness in the recent price movement.

Ideally one would like to see an increase in traded volume to demonstrate the enthusiasm of the traders to push the price past this technical resistance level.

However, there was a decrease in the traded volume in this breakout. Hence it is important to monitor the immediate price volume action to ascertain the validity of this breakout.

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: 100367
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Fri Nov 11, 2016 1:18 pm

not vested

Tight supply to support positive office reversion

Positive reversionary growth for Hong Kong office portfolio to continue

Good residential sales from China
Inexpensive valuation, maintain BUY with US$7.76 TP

The stock is trading at a 42% discount to our assessed current NAV, compared with its 10-year average of 25%.

Office leasing demand has been showing signs of moderation recently. But the tight vacancy and projected limited new
supply should provide support to office rents.

Despite increasing uncertainty in the global financial market, we keep our BUY call at this stage with a U$7.76 TP, given
inexpensive valuations.


Source: DBS

https://researchwise.dbsvresearch.com/R ... =cdebekhea
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: 100367
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Fri Mar 03, 2017 9:45 am

Hongkong Land reports 66% rise in FY16 earnings to $3.3 bil

By PC Lee

SINGAPORE (March 2): Hongkong Land, a member of the Jardine Matheson group, reported a 66% rise in FY16 earnings to $3.3 billion from a year ago.

This was due to higher net non-trading gains of US$2.5 billion recorded on the revaluation of the group’s investment property.

Excluding net non-trading gains, underlying profit attributable to shareholders fell 6% to US$848 million.

According to Hongkong Land, results from the group’s commercial portfolio continued to be strong due to largely positive rental reversions in Hong Kong and higher occupancy in both Hong Kong and Singapore.

In FY16, revenue rose to $1.99 billion from $1.93 billion a year ago.

The group’s average office rent in Hong Kong increased to HK$103 psf from HK$101 psf in 2015. The value of the group’s commercial portfolio in Hong Kong also in creased by 12% when compared to the prior year, due to office capitalisation rates compressing on strong investment demand and rental growth.

In Singapore, vacancy in the group’s office portfolio reduced to 0.1% to 3.0% at the end of 2015 as previously committed space was taken up during the year. Average rent decreased slightly to $9.30 psf, compared to $9.50 psf in 2015.

In its outlook, Hongkong Land expects stable performance from its commercial property portfolio in 2017 while the group’s residential business expects higher contribution from mainland China to be offset by lower profits from Singapore.

Hongkong Land has declared a final dividend of 13 US cents.

Shares of Hongkong Land closed 6 cents lower at US$7.02 on Thursday.

Source: The Edge

http://www.theedgemarkets.com.sg/smr/?q ... 6-87358173
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: 100367
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Fri Aug 04, 2017 9:26 am

not vested

Has the most valuable assets in HK, trading at the cheapest price

HKL’s 1H17 core profit rose 32% yoy on more property sales booked in Singapore.
Central office vacancy reached 18-year low. Rental growth accelerated in 1H17.
Recovery in central retail rent was stronger than expected.
Property sales in China entering a harvest period. Unrecognised sales jumped to US$1.4bn.
Reiterate Add. Management could consider strategic review i.e. separate listing or
changing listing structure to REIT / trust.

Reiterate Add; valuable asset at bargain trade

We revise our FY17-19F EPS by 0%/1%/1% after updating its property completion schedule. We also assume a flat yoy cap rate for 2017 i.e. 4.3% for HK Central portfolio. Hence, our NAV rises to US$14 and our TP to US$9.1, based on 35% discount to NAV.

HKL has the most valuable assets in HK but is also trading at the cheapest valuation (46% discount to NAV).

Key risks to our Add call: slowdown in HK/China economy, faster-than-expected rate hike in the US.



Source: CIMB

https://brokingrfs.cimb.com/sA9UKpNTA0X ... fKVcQ2.pdf
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: 100367
Joined: Wed May 07, 2008 9:28 am

Re: Hongkong Land

Postby winston » Fri Aug 04, 2017 10:26 am

not vested

1H17 result preview

1H17 underlying earnings expected to be 5% higher y-o-y

Modest improvement in gross rental revenue due to positive rental reversion for Central
office portfolio

Residential sales profits from China could be a swing factor on earnings

BUY with US$8.93 TP

Source: DBS

https://researchwise.dbsvresearch.com/R ... =cjeafkhah
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: 100367
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 3 guests

cron