[ET Net News Agency, 11 December 2020] Morgan Stanley trimmed its target price for
Henderson Land Development (00012) by 3% to HK$33 and maintained its "overweight" rating.
The research house believes that the sale of luxury residential units in Hong Kong will
be delayed due to the COVID-19 lockdown and the absence of Mainland buyers. Hence,
development profit booking in FY2021-22 will be lower. Morgan lowered its FY2021-22 EPS by
3% and 4% respectively.
Morgan said Henderson's forward dividend yield is high at 5.7%, but no announcement of
bonus shares in March 2020 was disappointing to investors. Slower non-core disposals could
affect Henderson's earnings growth. Its agriculture land bank is large, but conversion
could take longer than investors expect. (KL)