HK Land

HK Land: 0+5.5% at US$6.33, its highest since mid-April, in strong volume. Analyst says the move is due to a local newspaper reporting the company received a record-breaking offer for its Alexandria House office building in Central HK. Another analyst says the move is "off the back of its results (released July 26). Consensus EPS has gone up at least 7%, adding that it was most probably a stronger number than the market had anticipated and the outlook is better. Note that HKL expects greater contributions from the residential segment in 2H, while rental reversions on the commercial property portfolio, particularly in Hong Kong, are better than the market anticipated. the stock is cheap as well, trading at 0.58X book value, indicating asset values would need to fall an unlikely 40% for book value to equal the current share price. The April peak at US$6.38 may offer a cap.