Morgan Stanley has released a research report indicating that Sino Land (00083.HK) may see its fiscal year 2026 results impacted by shifts in project revenue composition and lower interest income. As a result, the investment bank forecasts the group's earnings for the period will decline by 8% year-on-year to HK$4.7 billion, and it anticipates the company may suspend its scrip dividend arrangement.

Morgan Stanley continues to assign a "Market Perform" rating to Sino Land, maintaining a target price of HK$12 per share.

While the bank expects Sino Land's dividend payout ratio to exceed 100%, it projects the full-year initial dividend will remain at HK$0.58 per share. This corresponds to a dividend yield of 5.4%, the second-highest among local Hong Kong property stocks, which the bank believes is attractive.

Morgan Stanley also forecasts that the group's property sales gross profit margin will bottom out this year. With an improvement in average selling prices and lower land costs, the margin is expected to recover in fiscal year 2027.