[ET Net News Agency, 3 February 2021] DBS Group Research lifted its target price for
Henderson Land (00012) to HK$36.8 from HK$34.75 and maintained its "buy" rating.
The research house said the stock is trading at a 53% discount to our assessed current
NAV, against its 10-year average of 44%. Valuation is inexpensive from a historical
viewpoint. Contributions from new investment properties should widen the company's rental
income base, thus improving its earnings quality, and justify a higher stock valuation
over the long term.
Its newly-built H Zentre and Harbour East should provide growing rental contributions as
occupancy rates gradually pick up. Targeted for completion in late 2022 or early 2023, the
Murray Road office development in Central should spice up the company's rental income, DBS
noted. (KL)