UBS: Henderson Land achieved core profits and dividends in line with expectations last year, with a target price of HK$30.5.

UBS released a research report stating that Henderson Land Development's core profit last year was 6.1 billion Hong Kong dollars, a 38% year-on-year decrease, in line with the bank's expectations. The company reduced its final dividend to HK$0.76 per share, along with an interim dividend of HK$0.50 per share, for a total dividend of HK$1.26 per share for the full year, a 30% year-on-year decrease, roughly in line with market expectations. The bank pointed out that Henderson Land's current dividend yield is 4.2%, higher than New World Development's 3.1%, and believes that once the uncertainty surrounding the dividend cut is eliminated, funds may shift towards Henderson Land. In addition, the report quoted Henderson Land's management as expecting that with the support of the income from the Mid-Levels West project The Coronation, the gross profit margin of the property development in Hong Kong in the 2026 fiscal year will rise to 17% to 19%. The bank has a target price of HK$30.5 for Henderson Land and a "Neutral" rating.