Home Capital Property

Hongkong Land narrows P/NAV discount, spurs interest in stock

The Edge Singapore
The Edge Singapore 9/7/2021 5:12 PM GMT+08  • 5 min read
Hongkong Land narrows P/NAV discount, spurs interest in stock
Hongkong Land's share buyback programme has spurred interest in the stock, marking the start of ways to narrow P/NAV discount
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Hongkong Land, perenially trading at a discount to its net asset value, announced on Sept 6 that it plans to invest up to US$500 million in a share buyback programme extending until December 31, 2022. Hongkong Land’s share price reacted positively, and has drawn attention to its still large discount to NAV. This alone could attract investors.

In addition, Hongkong Land reported a net loss of US$865 million in 1HFY2021, compared to a net loss of US$1.83 billion in FY2020.However, underlying profit to shareholders rose 12% to US$394 million. Annualised, this translates into an ROE of just 2.3%.

“The purpose of the share buyback is to reduce the capital of the Company. As the holding of treasury shares is not provided for in the Company's constitution, any shares which are repurchased by the Company will be cancelled,” Hongkong Land said in a statement.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.