Sino Land’s shares have underperformed their sector benchmark by 13pp since end-2016, and despite being up 28% during the same period, it is still 45% below its 10-year peak. This, in part, reﬂects its previous comparatively muted sales and land banking efforts. Consensus (Bloomberg) Buy ratings for Sino Land are near ﬁve-year lows. However, we expect the tide to turn for Sino Land in 2018 on a number of catalysts, including our forecasts for substantial growth in reported earnings in upcoming results on recogniztion of disposal gains, readiness for a key new project launch in HK, and from active asset recycling efforts in late 2017 . Up to Buy from Neutral.
Unloved and forgotten with low expectations
Unloved and underperformed...
Sino Land’s shares underperformed their sector benchmark (proxied by FTSE EPRA/NAREIT Hong Kong) by 13pp since end-2016, despite being up 28% during the same period. The stock is still 45% below its 10-year peak, while the sector benchmark is close to its 10-year high.