Hongkong Land's Cost Optimization Likely to Support Earnings

Dow Jones
07/30

0844 GMT - Hongkong Land's cost optimization efforts are likely to support earnings growth, DBS research analysts say in a note. The Singapore-listed property company is transitioning into a portfolio-led operating model, which should enhance its operational efficiency and boost scalability across businesses, they say. This should deliver annualized cost savings run rate of at least $25 million from 2027, the analysts estimate. The Hong Kong central office portfolio continues to improve as uncommitted vacancy declined, while the company's expanding rental footprint in China should strengthen the segment's rental income base. DBS retains a buy rating and US$9.89 target price on the Singapore-listed stock, which rose 1.0% to US$8.37.

 

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