Henderson Land Development Co Ltd

00012: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$57.00	Rnwv	Pvjthlp

Henderson Land Earnings: Transferring Coverage With Lower Valuation; Margins Under Pressure

Xinfu Lee

Aug 23, 2023

We transfer coverage of Henderson Land Development, or HLD, maintaining our no-moat rating and lowering our fair value estimate to HKD 36 from HKD 40 to factor in lower gross margins and the impact of currency headwinds. We think the shares are undervalued currently, trading at around 0.3 times price/book ratio and 8.7% dividend yield for 2023. We like the firm’s strong balance sheet, which enables it to ride out the current headwinds facing the Hong Kong residential market.

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