CGS-CIMB Research is maintaining its ‘add’ rating on Hongkong Land Holdings with a higher target price of US$5.70 ($7.67) from $5.30 previously after the company announced its FY2020 results ended December 2020 on March 11.
Despite Hongkong Land’s underlying profit for FY2020 declining by 11% y-o-y to US$960 million due to Covid-19 impacting development property delivery, CGS-CIMB analyst Raymond Cheng notes that it exceeded his estimates, while dividend per share for the period was maintained at 22 US cents, similar to the last two years.
While vacancies for its Hong Kong office portfolio rose from 2.9% to 6.3% in FY2020, Cheng points out that average monthly rent remained flat at HK$120 ($20.79) per square foot.
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