Bank of America Securities: expects SINO LAND (00083) profit recovery to take time, reiterates "buy" rating.

Bank of America Securities released a report stating that SINO LAND (00083) saw a slight decline in its basic net profit for the first half of the fiscal year 2026, ending in December of last year, with a year-on-year decrease of 0.9% to HKD 2.22 billion, which was 6% lower than the bank's expectations mainly due to a decrease in contributions from joint ventures. However, the bank reiterated its "buy" rating with a target price of HKD 13.3. The bank expects SINO LAND's profits to significantly recover in the fiscal year 2027 as the group still has land projects with high land costs to be accounted for. However, the management is now more open to increasing dividend payouts in the short term and no longer emphasizes earnings per share growth as a prerequisite. The bank continues to view SINO LAND as one of its preferred developers, as its profitability is more sensitive to rising property prices compared to its peers. In addition, with a strong balance sheet, SINO LAND has the ability to supplement its land reserves, and its 4.5% dividend yield remains attractive.