Jinwu Financial News | According to the Bank of Commerce International Development Research Report, Henderson Land (00012)'s performance for the full year of 2023 fell short of market expectations. Revenue increased 7.9% year over year to HK$27.57 billion, and core net profit rose 0.8% year on year to HK$9.71 billion, but 12% lower than Bloomberg's unanimous forecast. The net profit margin fell 2.5 percentage points to 35.2%. The annual dividend payout remained at HK$1.80 per share, and the core dividend ratio remained roughly ~ 90%.
The bank believes that its core business growth prospects are still uncertain: 1) Hong Kong property development: long development cycle for large-scale urban renewal and farmland conversion projects, 2) falling profit margins in Hong Kong property development, and 3) Hong Kong investment property: The bank expects that in the short term, oversupply and insufficient demand for central office buildings will lead to weak rents and high vacancy rates, while the new Central Waterfront project will only start contributing revenue as early as 2027, and the payback period is long. The company's performance fell short of market expectations. The bank maintained a neutral rating for Henderson and maintained a target price of HK$23.84.