HKLand

HKLand: CLSA has cut its TP target from US$6.66 US$6.45 and maintains its Outperform.
- 1H16 underlying NP was down 6% YoY due to lower property development profit booked during the period.
- Three headwinds for its share price performance;
1) decelerating central office rental growth.
2) HKLand’s 3% dividend yield is well below the 3.3-4.5% range of its landlord peers.
3) There has been a lack of buybacks to speed up share growth.