While Hongkong Land’s operating trends are “in line” with Lee’s forecasts, its performance was weighed down by lower contributions from the Hong Kong office portfolio and pre-opening expenses related to new investment properties in mainland China.
Morningstar Equity Research analyst Xavier Lee is maintaining his US$7.10 ($9.28) fair value estimate for “narrow-moat” Singapore-listed property developer Hongkong Land, which last week posted 13% lower y-o-y underlying profit for 3QFY2025 ended Sept 30.
“The shares remain undervalued, trading at an 11% discount to our valuation,” says Lee in a Nov 20 note, with a four-star rating on Hongkong Land against Morningstar’s five-tier scale.
