Goldman Sachs·2026-03-04 09:40Investment Rating - The report maintains a "Buy" rating for Sino Land Company Limited (00083) [1] Core Insights - Sino Land's performance for the first half of the 2026 fiscal year met expectations, with core profit remaining stable at HKD 2.2 billion, primarily impacted by foreign exchange losses on US dollar deposits [1] - After accounting for contributions from associates and joint ventures, the group's profit before tax increased by 17% year-on-year to HKD 2.4 billion, driven by higher revenue from property development [1] - The target price has been raised from HKD 14.6 to HKD 15.2, reflecting an upward revision of earnings per share forecasts for the fiscal years 2026 to 2028 by 8%, 1%, and 1% respectively [1] Financial Performance - The profit margin for property development remained low at 7.2%, indicating high land acquisition costs from previous years [1] - The management's outlook on the market is increasingly positive, citing improved sentiment in the Hong Kong property market since the end of 2025, which supports gradual price increases for new projects [1] - The group recorded contract sales of HKD 6.4 billion in the first half of the fiscal year, with an additional HKD 1.5 billion recorded since then, leaving HKD 6.1 billion yet to be recognized [1] Future Expectations - Sino Land is expected to see an improvement in property development profit margins from 10% in fiscal year 2026 to 21% by fiscal year 2028 [1] - There is an anticipated recovery in retail tenant sales, while negative rental growth for office renewals may persist; however, opportunities are seen in shared workspaces and demand from small and medium enterprises [1]