Henderson Land Development Co Ltd
00012: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$24.00 | Bwv | Qtzbhmpk |
Henderson Land Earnings: Transferring Coverage With Lower Valuation; Margins Under Pressure
We transfer coverage of Henderson Land Development, or HLD, maintaining our no-moat rating and lowering our fair value estimate to HKD 36 from HKD 40 to factor in lower gross margins and the impact of currency headwinds. We think the shares are undervalued currently, trading at around 0.3 times price/book ratio and 8.7% dividend yield for 2023. We like the firm’s strong balance sheet, which enables it to ride out the current headwinds facing the Hong Kong residential market.