HK Land

HK Land: FY12 net profit -73% YoY to US$1.44b from US$5.31b, despite taking into account net gains of US$661.5m resulting from revaluation of its investment properties. FY11 Net profit included a net gain of US$4.60b in revaluations. Excluding the non-trading items, underlying NP +11% to US$777m from FY11's US$703m. JP Morgan maintains O/w, TP US$8.60 from 8.50, and believe that as Central office demand improves, share price performance of HKL will gradually catch up to other landlords like Swire Property and Wharf Holdings.