Henderson Land Earnings: Revaluation Losses Drag Results; Shares Remain Cheap

Henderson Land’s first-half 2024 net profit fell 47% year on year to HKD 3,174 million, mainly weighed down by revaluation losses on its investment and development properties. Excluding these non-cash fair value losses, underlying profit declined by a narrower 10% year on year, in line with our expectation. The group also maintained its interim dividend per share of HKD 0.50, unchanged year on year. We leave our earnings estimates (after excluding revaluation changes) broadly the same and retained our fair value estimate of HKD 34 per share. We think the shares continue to screen as cheap, and we like Henderson Land for its strong exposure to the Northern Metropolis development project with its massive agricultural landbank.