Goldman Sachs: Reiterates "Buy" rating for Sino Land (00083) with target price raised to HK$15.2.

Goldman Sachs released a research report stating that SINO LAND (00083) met expectations for the first half of the 2026 fiscal year, with a basic profit after tax roughly flat at 2.2 billion Hong Kong dollars, mainly due to the impact of exchange rate losses on US dollar deposits. Including contributions from associated companies and joint ventures, the group's profit before tax increased by 17% year-on-year to 2.4 billion Hong Kong dollars, driven primarily by increased revenue from property development. Based on the latest performance, Goldman Sachs has raised its earnings forecast for the fiscal years 2026 to 2028 by 8%, 1%, and 1% respectively, with a target price raised from 14.6 Hong Kong dollars to 15.2 Hong Kong dollars, reiterating a "buy" rating. During the period, the profit margin of property development remained at a low of 7.2%, reflecting higher land costs from previous purchases. Management's view on the market outlook is becoming more positive, stating that the atmosphere in the Hong Kong property market has improved since the end of 2025, supporting gradual price increases for new projects. The group recorded 6.4 billion Hong Kong dollars in contracted sales in the first half of the fiscal year, with an additional 1.5 billion Hong Kong dollars to date and 6.1 billion Hong Kong dollars not yet recognized. Two new projects will be launched in the coming months. Goldman Sachs expects the profit margin of property development for Sino Land to improve from 10% in the 2026 fiscal year to 21% in the 2028 fiscal year, with retail tenant sales also expected to rebound. While negative rental growth for office space renewals may continue, opportunities are seen in areas such as shared workspace and demand from small and medium enterprises.