HONGKONG LAND HOLDINGS LIMITED (SGX:H78)
HongKong Land - To Repurchase Up To US$500mil Worth Of Shares
- Hongkong Land announced today that it intends to repurchase up to US$500m worth of shares in a share buyback programme.
- We think the programme reflects management’s positive response to investors’ concerns on Hongkong Land’s persistently deep discount to book value and net asset value.
- Hongkong Land's share price trades at a 59% discount to end-FY21F NAV with a 5.2% dividend yield, and is one of the cheapest HK landlords. Reiterate ADD.
Hongkong Land intends to repurchase up to US$500 worth of shares
- After market close at Singapore/Hongkong today, Hongkong Land announced that it intends to invest up to US$500m in a share buyback programme, which extends until 31 Dec 2022.
- Hongkong Land (SGX:H78) says that the repurchase is in line with its long-standing capital allocation practice, which is to prioritise investment in new assets to drive long-term growth and shareholder value, continued payment of steadily increasing dividends, and investment in existing assets on an opportunistic basis (including share buybacks).
Reflects management’s response to investors’ concerns
- This is the first time in more than 15 years that Hongkong Land has announced beforehand a share buyback persistently deep discount to book value and net asset value.
One of the cheapest Hongkong landlords; reiterate ADD
- Trading at a 59% discount to end-FY21F NAV, Hongkong Land is one Central accounts for 51% of its end-FY21F GAV, based on our estimates.
- Hongkong Land is trading at an FY21F dividend yield of 5.2%, higher than the average of 4.6% for other HK-based landlords and REITS.
- See
- We reiterate our investment property (IP) portfolio.
- A prolonged COVID-19 outbreak is a key downside risk.
Raymond CHENG CFA
CGS-CIMB Research
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Will CHU CFA
CGS-CIMB Research
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Steven MAK
CGS-CIMB Research
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https://www.cgs-cimb.com
2021-09-06
SGX Stock
Analyst Report
5.700
SAME
5.700
