Analyst Jeff Yau of DBS reiterated a Buy rating on Sino Land Co (SNLAF – Research Report), with a price target of HK$10.78.
Jeff Yau has given his Buy rating due to a combination of factors related to Sino Land Co.’s financial performance and strategic positioning in the market. The company’s underlying earnings have shown a 5% growth, surpassing initial estimates, which is partly attributed to a stronger-than-expected interest income. Furthermore, Sino Land Co. has a robust pipeline of new project launches planned for 2024, which is anticipated to contribute to future earnings growth. The increase in net cash holdings to HK$43.3 billion as of December 2023 underscores the company’s solid financial foundation and capacity for future growth and acquisitions.
Additionally, Jeff Yau’s optimism is bolstered by Sino Land Co.’s strategic acquisitions of three residential sites since September 2023. These acquisitions, made at favorable costs, are expected to yield high pre-tax margins, thus enhancing the company’s medium-term earnings outlook. The expansion of its investment property portfolio, including the addition of properties like Landmark South and One North, is set to increase rental income contributions. With the stock trading at a significant discount to its assessed net asset value (NAV), Jeff Yau sees this as an attractive valuation, and the company’s strong balance sheet positions it well for value-accretive land acquisitions, supporting higher long-term valuations and justifying a target price of HK$10.78.
In another report released on February 23, HSBC also maintained a Buy rating on the stock with a HK$10.30 price target.
SNLAF’s price has also changed slightly for the past six months – from $1.070 to $1.105, which is a 3.27% increase.
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Sino Land Co (SNLAF) Company Description:
Sino Land Co. Ltd. operates as an investment holding company, which engages in the development of residential, office, industrial, and retail properties. The firm is also involved in hotel investment and management, club management, property management, car park operations, cleaning, and security services. It operates through the following segments: Property Sales, Property Rental, Property Management and Other Services, Hotel Operations, Investments in Securities, and Financing. The company was founded on January 5, 1971 and is headquartered in Hong Kong.
