Company Coverage
Sino Land (83 HK): FY26: Results In Line; Strenghtened Cash To Support Landbank Expansion
BUY (Maintained)
Current price:
Target price:
Upside:
HK$10.29
HK$14.00
+30.8%
Analyst
Analyst
Highlights
- FY26 underlying profit fell 6.4% yoy to HK$4,789m, in line with consensus and 2.3% ahead of our forecast. Annual DPS was maintained at HK$0.58, implying a higher payout ratio of 113.7%.
- With a strengthened net cash position, the company is keen on buying land in Hong Kong, while maintaining a selective approach. Leasing momentum is building among office and residential IPs; tenant remixing is continuing for the retail portfolio.
- Maintain BUY with a higher target price of HK$14.00.
Analysis
- FY26 results in line; cash position further strengthened. Underlying net profit (UNP) was HK$4,789m (-6.4% yoy), in line with consensus estimate of HK$4,792m and 2.3% higher than our estimate. The yoy decline in UNP was mainly due to lower interest income (-14.8% yoy to HK$1,923m), with the drop in revenue (-2.9% yoy) being largely offset by improved profit margin (+1.3% yoy). Net cash position increased 11.5% yoy to HK$55,130m. FY26 DPS was maintained at HK$0.58/share, implying a higher payout ratio of 113.7%.
Highlights
- FY26 underlying profit fell 6.4% yoy to HK$4,789m, in line with consensus and 2.3% ahead of our forecast. Annual DPS was maintained at HK$0.58, implying a higher payout ratio of 113.7%.
- With a strengthened net cash position, the company is keen on buying land in Hong Kong, while maintaining a selective approach. Leasing momentum is building among office and residential IPs; tenant remixing is continuing for the retail portfolio.
- Maintain BUY with a higher target price of HK$14.00.
Analysis
- FY26 results in line; cash position further strengthened. Underlying net profit (UNP) was HK$4,789m (-6.4% yoy), in line with consensus estimate of HK$4,792m and 2.3% higher than our estimate. The yoy decline in UNP was mainly due to lower interest income (-14.8% yoy to HK$1,923m), with the drop in revenue (-2.9% yoy) being largely offset by improved profit margin (+1.3% yoy). Net cash position increased 11.5% yoy to HK$55,130m. FY26 DPS was maintained at HK$0.58/share, implying a higher payout ratio of 113.7%.
BUY (Maintained)
Current price:
Target price:
Upside:
HK$10.29
HK$14.00
+30.8%
Analyst
Analyst
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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