Changes in Hong Kong stocks | Henderson Land (00012) rose nearly 7% in early trading, Bank of America says the company's dividend ratio is attractive and is the most sensitive to HIBOR in the industry

The Zhitong Finance App learned that Henderson Land (00012) rose nearly 7% in early trading. As of press release, it had risen 5.52% to HK$23.9, with a turnover of HK$271 million.

Bank of America released a research report saying that Henderson Land's dividend rate of 7.9% is attractive compared to the average of 5.4% for Hong Kong developers. If the one-month Hong Kong Interbank Interest Rate (HIBOR) remains at 2% for a long time, investment demand in the property market is expected to pick up. Moreover, Hengdi products are mainly aimed at investors, that is, small unit areas and urban locations. Furthermore, Henderson Land, along with a 42% net debt ratio for shareholder loans, will benefit even more from lower floating interest rates. For every 1% decrease in the bank's sales calculation HIBOR, Henderson Land's net profit may increase by 6% on an annualized basis, which is the most sensitive among Hong Kong developers.

BOC International previously released a research report saying that Henderson Land's rental income is expected to grow steadily from 2025 to 2027. Driven by the new project, its compound rent growth rate is about 13%. However, as the Group's property development cycle is still uncertain, the bank lowered the Group's target price to HK$23.02, a 60% discount on the net asset value per share, maintaining a “neutral” rating.