[ET Net News Agency, 6 November 2019] CLSA lifted its target price for Sino Land
(00083) to HK$13.2 from HK$12.5 and maintained its "outperform" rating.
The research house said Sino Land's HK$34bn net-cash position as of FY2019 should
finally bear fruit in the current downcycle, enabling acquisition of cheaper lands or
assets. With strong Grand Central presales, Sino Land may raise absolute DPS from FY2019's
HK$0.55 to FY2020's HK$0.56.
CLSA lowered its 2020-21 earnings estimate by 10.3%-17.4% to reflect declining rents and
slower property sales in Hong Kong. It said Sino Land is the only net-cash developer
within the sector that provides a cushion against a possible market downturn.
This net-cash position also suggests a high certainty of dividend payments, CLSA added.
(KL)