[ET Net News Agency, 14 September 2018] HSBC Global Research hosted the senior
management of Sino Land (00083) for a non-deal roadshow (NDR) in the EU/US during the week
of 3 September.
It noted that 4Q will be an important period for Sino Land given multiple launches. Its
two major projects, Mayfair by the Sea 8 (528 units) and Grand Central I & II (1,999
units), will be launching in the coming two to three months.
HSBC estimated its contracted sales in HK will grow from HK$3bn in FY2018 to HK$16-17bn
p.a. in the next three years. While investors expressed concern over the residential
market given recent cautious market sentiment and stock market volatility, the primary
market continues to perform resiliently.
HSBC noted that Sino Land launched its Madison Park (100 units) in Cheung Sha Wan for
sale in late August, and the response was satisfactory with 64% of units sold within two
weeks.
Meanwhile, it noted that Sino's financial position is strong, with a net cash position
of HK$20bn or HK$3.1/share, equivalent to 24% of market capitalisation. If the company
sells all units in its four new launches in the coming nine months, total sales proceeds
would reach HK$39bn and drive its net cash position to HK$60bn - equivalent to 71% of
market capitalisation. (KL)