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<Research>Jefferies Drops TP of HENDERSON LAND (00012.HK) to $21; Property Development Profits Miss
Jefferies said in a research report that HENDERSON LAND (00012.HK) recorded an underlying profit of $5.4 billion in 1H24, down 10% YoY, or up 21% YoY if excluding the revaluation g...
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<Research>Jefferies Drops TP of HENDERSON LAND (00012.HK) to $21; Property Development Profits Miss
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Jefferies said in a research report that HENDERSON LAND (00012.HK)  +0.650 (+2.731%)    Short selling $5.66M; Ratio 9.168%   recorded an underlying profit of $5.4 billion in 1H24, down 10% YoY, or up 21% YoY if excluding the revaluation gain from SUNLIGHT REIT (00435.HK)  +0.020 (+1.058%)    Short selling $92.96K; Ratio 6.524%   , which was weaker than the broker's expectation. The decline was mainly due to weaker-than-expected profit from property development during the period, partly offset by the gain from the resumption of agricultural land.

Interim dividend for the period was flat at HK51 cents per share YoY. While appreciating HLD's commitment to shareholder returns, Jefferies lowered its EPS forecasts on the developer for this year and next year by 13% and 7% respectively, taking into account that consensus forecasts have not yet taken into account the downside of profit margins and the possible increase in interest expenses as a result of the capitalisation cuts. The broker's current earnings forecast for 2024 to 2026 is 16% to 20% below market consensus.

Related NewsJPM Lists Sensitivity Analysis of HK Developers' Underlying Earnings on Impact From Rate Cuts (Table)
Jefferies suggested that investors should be aware of future earnings risks of HLD. The broker maintained its Hold rating on HLD and trimmed its target price from $23 to $21.

(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-09-17 12:25.)

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