Bocom International has issued a research report maintaining its target price for HENDERSON LAND (00012) at HK$32.68. This target represents an approximate 50% discount to the forecasted net asset value per share for 2026. The firm has also reaffirmed its "Buy" rating on the stock.

The report indicates that HENDERSON LAND's financial position remains robust. The net debt ratio is projected to decrease to 18.7% by the end of 2025, down from 21.1% at the end of 2024, with net debt standing at HK$60.219 billion.

Looking forward, policies promoted by the Hong Kong government, such as the development of the Northern Metropolis, talent attraction initiatives, and efforts to establish an education hub, are expected to provide some support to the local economy and property market. HENDERSON LAND is well-positioned with ample land reserves and flagship commercial projects nearing completion.

Bocom International believes the current share price trades at a significant discount to net asset value, suggesting a margin of safety in the valuation. However, the report notes that the company's 2025 performance fell short of expectations, leading to a more conservative dividend policy. The full-year dividend was HK$1.26 per share, a decline of approximately 30% compared to the previous year.