[ET Net News Agency, 5 August 2020] DBS Group Research lowered its target price for
Wharf Holdings (00004) to HK$16.2 from HK$18.65 and maintained its "buy" rating.
The research house said, excluding revaluation deficits on investment properties, the
company reported underlying losses of HK$1.13bn, dragged by impairment provisions of
HK$2.86bn (or HK$6,560psf) on its Kowloon Tong luxury residential project.
Including associates and joint ventures, operating profits from property development in
China slid 36% to HK$1.17bn due to delays in project completion led by the COVID-19.
Year-to-date, the share price of Wharf Holdings has come off by 34%, underperforming the
broad market by 14ppts. Following the share price correction, the counter is now trading
at a 75% discount to DBS's appraised current NAV, which the research house thinks is
unjustified. (KL)