Gelonghui, Feb. 7 | According to a research report published by DBS, Henderson Land sold the entire North Point Port Huidong commercial building to Li Ning for 2.21 billion yuan last year. The bank believes that Henderson Land's sale of assets this time is positive for the company because it helps increase profits and also enhances its financial strength. On the other hand, the remaining three plots of land in the Fanling North New Development Area will be recovered by the government through cash compensation, which will also bring considerable profits to the company. As the government is speeding up land acquisition in the northern metropolitan area, Henderson Land will unlock the hidden value of its land reserves. According to DBS, Henderson Land has the largest agricultural land reserve in Hong Kong, most of which is located in the northern metropolitan area. The bank believes that any current favorable news about the development of the northern metropolitan area will bring room for growth in Hengdi's stock price. An improvement in the recurring revenue base driven by the expansion of the rental portfolio should lead to better profit quality, which should support higher stock valuations in the long run. The bank lowered the Group's target price from HK$26.7 to HK$24.7, with a “buy” rating.