HONGKONG LAND HOLDINGS LIMITED
H78.SI
Hongkong Land (HKL SP) - 1H16 result preview
- Hongkong Land’s underlying interim earnings expected to fall 6%.
- Gross rental receipts should grow modestly by 3%.
Forecast
- Hongkong Land will report its interim results for FY16 on 28 July.
- We forecast the company’s underlying earnings to fall 6% to US$393m partly because it recorded a provision write-back of US$16m for MCL’s Singapore projects in 1H15.
- Interim DPS is expected to remain unchanged at US$0.06.
- Gross rental revenue is estimated to be 3% higher due to positive rental reversion and slightly higher average occupancy for its Central office portfolio.
- Average rent growth for retail portfolio is expected to moderate.
- MCL did not complete any project in 1H16. Residential earnings which are primarily from China, would be a swing factor on earnings.
- Key things to watch for include the company’s outlook of office markets in Hong Kong/Singapore, latest office occupancy and rental reversion trend, contributions from residential projects in China and an update on new investment plans in the region.
- Price Target: US$7.87. Rating: BUY.
Jeff YAU CFA
DBS Vickers
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Andrew Robert LAM
DBS Vickers
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http://www.dbsvickers.com/
2016-07-21
CIMB Securities
SGX Stock
Analyst Report
7.87
Same
7.87
