Result preview: Lifted by higher development earnings
- 1HFY22 underlying profit expected to rise 47% on higher development earnings
- Mayfair by the Sea 8 and Grand Central provide the mainstay of development earnings
- Rental earnings should fall modestly
Sino Land will announce its 1HFY22 result on 17 Feb. We forecast the company’s underlying earnings to rise 47% to HK$3.15bn led by significantly higher development income. Interim DPS is estimated to remain unchanged at HK$0.14.
We forecast that development profit more than tripled to HK$2.65bn. The bulk should stem from selling Mayfair by the Sea 8 in Tai Po and Grand Central in Kwun Tong. Net rental income should fall 4% due to negative reversionary growth. Hotel operations in Singapore is expected to return to profitability aided by the government’s relaxation of travel restrictions.
Key things to watch out for include dividend paid, the company’s outlook of residential and commercial properties amid the recent COVID resurgence, and land banking strategy, amongst others.