[ET Net News Agency, 13 February 2018] Hong Kong International Construction Investment
Management (HKICIM) Group (00687), a subsidiary of Hainan Airlines (HNA), sold two plots
of land at Kai Tak to Henderson Land Development (00012) for HK$15.96bn.
Nomura factored in a lower finance cost (3% for Henderson Land versus 8% for HNA) and
lower construction cost (HK$4,000 psf for Henderson Land versus HK$4,500 psf for HNA), it
only sees a mere 1% profit margin by Henderson Land.
The research house is therefore rather neutral on the impact to Henderson Land upon this
transaction, based on its ASP assumption of HK$23,000 psf, which is referenced to the
prevailing ASP achieved by Oasis Kai Tak, the project under launch by Wheelock (00020) in
the proximity.
It maintained its "neutral" rating on Henderson Land, with a target price of HK$55.9.
On the sector, Nomura also maintained 0% y-y residential price outlook in Hong Kong for
2018. (KL)
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00020 SENSETIME-W
Nominal 
0.830 +0.030 (+3.750%) Others
13/02/2018 12:03
[I-bank focus]Kai Tak plots acquisition neutral to Henderson
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