"The current valuation is unjustifiably low even allowing for continued office market headwinds in Hong Kong and property impairment in China," state analysts Jeff Yau, Percy Leung and Cherie Wong.
No thanks to the poor sentiment of the mainland property market, Hongkong Land is expected to book a write-down of between US$200 million and US$300 million.
Even so, DBS Group Research, citing its already "unjustifiably low valuation", is keeping its "buy" call on this counter and has even raised its target price to US$4.05 from US$3.98.
