UBS: SINO LAND's mid-term earnings and dividends meet expectations, stock price reaction expected to be neutral

According to a research report by UBS, SINO LAND (00083.HK) reported a 1% year-on-year decline in core profit to HKD 2.2 billion for the first half of the fiscal year ending December 2026, maintaining an interim dividend of HKD 0.15 per share, with a payout ratio of 62%, all in line with the bank's expectations. The group's net cash level increased from HKD 49.5 billion in June 2025 to HKD 51.4 billion. However, due to the impact of declining interest rates, net interest income fell by 14% year-on-year to HKD 983 million.

Management remains cautiously optimistic about the recovery of the real estate market, with capital allocation priorities continuing to focus on replenishing land reserves and exploring new investment opportunities (such as student dormitories). At the same time, the group stated that it is reviewing share buyback and scrip dividend options, but there is no specific timetable. The bank expects the stock price to react neutrally to the performance, currently setting a target price of HKD 14.3 and a "Buy" rating