$HongkongLand USD(H78.SI)$ You must have heard many people saying, "No $10, no sell!". Let's examine:-
Core Strategic Pillars
- Concentrating on ultra-premium, integrated commercial properties in Asia’s gateway cities (Hong Kong, Singapore, Shanghai).
- Moving away from the build-to-sell development model, which had historically contributed significantly to profits but carried higher volatility.
- Portfolio Anchors
- Flagship assets in Central (Hong Kong), Marina Bay (Singapore), and West Bund (Shanghai) are positioned as growth engines.
- Portfolio Recycling
- Selective divestment of investment properties to unlock capital (targeting up to USD 10bn over 10 years).
- Funds redeployed into expanding the ultra-premium portfolio.
Tactical Implications
- Risk Reduction: By exiting build-to-sell, HKL reduce exposure to land acquisition cycles and property market volatility.
- Capital Discipline: Recycling assets ensures liquidity while maintaining balance sheet strength.
- Brand Positioning: Reinforces HKL’s identity as a steward of Asia’s most prestigious commercial districts.
- Investor Optics: Dividend growth and buybacks are clear signals to stabilize and enhance shareholder confidence.
HKL is trading development volatility for institutional-grade stability and prestige optics.
6 months TP of USD10 is highly achieveable.
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