The Zhitong Finance App learned that Citi released a research report saying that considering the large amount of new supply in the Kai Tak district, it is expected that sales of new listings in the district will be very slow, while lowering property prices, causing profit margins to decline. Reiterating the “sale and sale” rating of Henderson Land (00012), the bank assumes that interest rates will remain at a high level over a long period of time, pointing out that Henderson Land has a high debt ratio, and at the same time has a long development cycle for the entire year, it is expected to continue to drag down dividend payments and maintain a dividend payout of 1.8 yuan per share throughout the year. Based on forecasting the Hong Kong property market and corporate profit margins, the target price was lowered from HK$23.3 to HK$18.3, increasing the corresponding net asset value discount margin per share to 60%, while reducing the profit forecast for the 2024 to 2025 fiscal year by 17%.

The bank pointed out that Henderson Land plans to launch a number of new projects in the second half of this year, most of which are small units. Among them, the first phase of the Bayeux Street project in Shek Kip Mei will provide 738 households, and the Taizi Sai Yeung Choi North Street project will provide 492households, the Ka Shan Street project in Tai Kok Tsui provides 234households, while the third phase of the Hung Hom Bijiafang project, which is currently on sale, provides 278householdsThey are all redevelopment projects for old buildings. Under current market conditions, price reduction promotions may be required.