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HSBC Research Cuts HENDERSON LAND (00012.HK) TP to $35.8, Keeps Buy Rating
2026-03-24 14:24:13
HENDERSON LAND (00012.HK)'s 2025 underlying profit dropped by 38% YoY to $6.1 billion, missing expectation, HSBC Global Research published a research report saying.

Due to increased uncertainties from the Middle East conflict, the management decided to reduce its full-year DPS by 30% YoY to $1.26 from the perspective of prudent financial management, below the market consensus of $1.65.

The report anticipated business improvement this year, benefiting from a steady increase in contributions from its 41.5%-owned HK & CHINA GAS (00003.HK), stabilizing property leasing business, and a bottoming out of its profit sales margins supported by its residential project, The Legacy. Its overall operating profit margin is expected to rise from 8% last year to 20%.

The broker lowered its net asset value (NAV) per share forecast by 3.3% to $51.2, and cut its target price from $37 to $35.8, based on an unchanged target NAV discount of 30%, with rating kept at Buy, with the belief that, property sales improved and borrowing costs decreased since 2H25, leading to a better earnings outlook.
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