[ET Net News Agency, 27 February 2020] Daiwa Research lowered its target price for Sino
Land (00083) to HK$15.2 from HK$15.9 and maintained its "buy" rating.
The research house said proceeds from the sale of Grand Central (82% sold) have now
risen to HK$18bn, which will boost Sino Land's underlying profit in FY2021. Meanwhile,
rental businesses are holding up so far, with an overall occupancy rate at 96% and
continued positive rental reversion in its office portfolio.
While disruption caused by the HK protests in 1H FY2020 led to a 6.6% fall in its
carpark revenue and rental reliefs being extended to some tenants, its overall gross
rental income still managed to rise by 0.5%.
Daiwa lowered its non-core-asset sales assumption for 2H FY2020, but it noted that a
strong earnings recovery in FY2021 looks secured. It also lowered its assumption of the
amount of non-core assets it can sell in the coming four months; as such, Daiwa cut its
FY2020 EPS forecast by 20%. (KL)