• Our report a fortnight ago asked: HONGKONG LAND: This Company's Buyback Blitz Narrows NAV Discount. What Upside is Left? DBS Group's latest note offers an answer: US$10.13. • That target means there's ample upside for a stock that has been the subject of frequent share buyback by the company after trading for years at a huge discount to its Net Asset Value. • On 3 Feb 2026, the company said its share buyback programme will be increased by an additional US$300 million, bringing the total amount allocated to the programme to US$650 million (since 2024). • The stock has gone up 100% from 1 year ago, helped also by renewed investor interest and, now, a management-driven boost from the launch of its private real estate fund. Read what DBS says below..... |
Excerpts from DBS Group Research report
Analysts: Jeff Yau, Percy Leung and Cherie Wong
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Marching ahead |
Investment Overview
Premium landlord in key gateway cities across Asia. In Oct 24, the company unveiled its new corporate strategy, focusing on ultra-premium integrated commercial projects in Asia’s gateway cities. The company expects to expand IP assets under management (AUM) to USD100bn by 2035.
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HONGKONG LAND |
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Share price: |
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In Feb-26, Hongkong Land launched its private real estate fund, the Singapore Central Private Real Estate Fund (SCPREF) with AUM of SGD8.2bn at inception.
Hongkong Land is the General Partner and Manager of the fund, holding >50% with an intention to maintain at least 30% going forward.
Total net proceeds from the establishment of SCPREF, including the disposal of a one-third stake in MBFC Tower 3, amounted to USD1.3bn. Since 2024, the company has recycled a total of USD3.4bn, achieving c.85% of its 2027 USD4bn target.
Upsized share buyback to support share price. The company has increased its share buyback programme by USD300m to USD650m, with an extension to Jun-27.
This should provide strong support to its share price.
The stock trades at a 25% discount to our appraised current NAV. |
Key Risks to our view
Failure to successfully execute its new corporate strategy could dampen the company’s growth outlook and negatively impact its share price performance.
Any further deterioration in leasing demand for office properties in Central could drag earnings and valuation.
See the DBS report here.
