Hongkong Land (HKL SP) Buy: Progressing steadily to its vision 2035

Research evidence excerpt

Hongkong Land (HKL SP) Buy: Progressing steadily to its vision 2035

nt of a local private fund to support future growth.

New mall openings in mainland China, like JLC and The Ring Garden City, along 8.05

with a solid pipeline, should underpin growth. Phase 2 of the Westbund Central 5.10

officially opened in April, with good leasing progress across both office and retail. 06/25 12/25 06/26

Target price: 9.82 High: 8.82 Low: 5.65 Current: 7.28

…however, the fund business is key to a re-rating. For HKL to re-rate further, we Source: LSEG IBES, HSBC estimates

believe management needs to demonstrate execution on its fund management

business (growth), including: 1) the pace of AUM growth and 2) execution in new Raymond Liu*, CFA

Analyst, Asia Real Estate and Conglomerates

fund strategies where HKL currently has limited exposure, as HKL showcased its The Hongkong and Shanghai Banking Corporation Limited

capital recycling initiatives (value) over the past two years. Its Singapore private fund raymond.w.m.liu@hsbc.com.hk

+852 2996 6743

is reportedly exploring a bid for Marina One complex at SGD5.7bn (Mingtiandi, 16

Michelle Kwok*

June). While we do not expect meaningful NAV accretion upon any successful Head of Asia Real Estate and HK Equity Research

bidding, it could positively surprise investors in terms of execution, given the The Hongkong and Shanghai Banking Corporation Limited

michellekwok@hsbc.com.hk

challenges of capital raising and deployment amid the Middle East conflict. +852 2996 6918

Maintain Buy and TP of USD9.82. HKL trades at a 0.51x PB multiple, a 38% NAV Ganesh Siva* Associate

discount and a 3.7% 2026e yield. Our unchanged TP implies c35% upside from the Bangalore

current share price, and we have a Buy rating on the stock. Key downside risks: