UBS: Upgrades Henderson Land Development (00101.HK) target price to 9.6 Hong Kong dollars. Potential asset split could unlock value.

Wisdom Financial APP learned that UBS issued a research report stating that potentially splitting assets into private REITs could change investors' views on Henderson Land Development (00101.HK). The stock's P/B ratio is only 0.29 times, and any asset divestiture would help narrow its per share net asset value (NAV) discount; potential asset divestiture could help Henderson Land reduce debt; Henderson can generate fee income continuously through private REITs and have a private REIT platform for future capital recovery. The bank raised Henderson Land's target price by 14%, from HK$8.4 to HK$9.6, maintaining a "buy" rating, adjusting earnings estimates for this and next year by -4% and +3% to reflect the latest mid-term performance and the completion schedule of the Hangzhou shopping mall.