Jeff Yau, an analyst from DBS, maintained the Buy rating on HKR International Limited. The associated price target was raised to HK$1.35.
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Jeff Yau has given his Buy rating due to a combination of factors that highlight HKR International Limited’s strong potential for growth and value. The company benefits from a substantial low-cost land bank in Discovery Bay, which is a well-regarded residential community. This asset is expected to support HKR’s long-term growth prospects significantly. Additionally, the upcoming launch of Toscana in Discovery Bay is anticipated to be a major driver of development profits, with Phase 1 expected to provide 320 residential units.
Moreover, HKR’s joint venture with Swire Properties in Shanghai, HKRI Taikoo Hui, is considered a valuable asset that contributes positively to the company’s earnings outlook. The stock is currently trading at a significant discount to its appraised net asset value, which suggests a potential for appreciation. Jeff Yau’s target price of HKD1.35 reflects a more favorable valuation compared to the current market price, indicating a 19% upside potential. These factors collectively support the Buy recommendation.
According to TipRanks, Yau is a 4-star analyst with an average return of 10.2% and an 80.36% success rate. Yau covers the Real Estate sector, focusing on stocks such as Sun Hung Kai Properties, Hongkong Land Holdings, and HKR International Limited.