UBS: SINO LAND's Interim Earnings and Dividend Align with Forecasts; Neutral Stock Reaction Expected

Stock News
03/03

UBS stated that SINO LAND's (00083) core profit for the first half of the fiscal year ending December last year decreased by 1% year-on-year to HKD 2.2 billion. The company maintained an interim dividend of HKD 0.15 per share, with a payout ratio reaching 62%, both meeting the bank's expectations. The bank anticipates a neutral stock price reaction to the earnings report and currently assigns a target price of HKD 14.3 with a "Buy" rating. The group's net cash position further increased from HKD 49.5 billion in June 2025 to HKD 51.4 billion. However, due to declining interest rates, net interest income fell by 14% year-on-year to HKD 983 million. Management maintains a cautiously optimistic outlook on the property market recovery, with capital allocation priorities continuing to focus on replenishing land reserves and exploring new investment opportunities, such as student accommodation. Simultaneously, the group indicated it is reviewing options for share buybacks and scrip dividend arrangements, though no specific timeline has been set.

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