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Review of my investment in Hong Kong Land
15 Jan 2021 (100 views)

Hong Kong Land (H78.SI) is listed in Singapore (in USD) and in London. It is also listed in London. It is not listed in Hong Kong. 

HKL has about half of its assets in Hong Kong (mainly in prime commercial properties). The other 50% is in prime commercial property in Singapore and Jakarta. 

I became interested in HKL when I found that its price to book is 0.25. The price of the share shows a discount of 75% from the asset value.

It has a trailing PE of 48 times and a forward PE of 10 times. Its forward dividend yield is 2.6%.

I bought 30,000 stock at an average price of US$4.63. At the lowest point on 18 May 2020, the price as $3.52. I had a paper loss of $33,300. I ignored the loss and kept the stock because of its large discount to the asset value.

The stock moved up 25% over the past three months and is now at $4.65. My paper loss has fully disappeared. 

I expect the stock to move up towards its value (which I project to be $6.50 i.e. 40% of the asset value). At that price, the PE ratio would be 14 times and the dividend yield would be 1.9%.

Tan Kin Lian

 


Review of my investment in Hong Kong Land
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Hong Kong Land (H78.SI) is listed in Singapore (in USD) and in London. It is also listed in London. It is not listed in Hong Kong. 

HKL has about half of its assets in Hong Kong (mainly in prime commercial properties). The other 50% is in prime commercial property in Singapore and Jakarta. 

I became interested in HKL when I found that its price to book is 0.25. The price of the share shows a discount of 75% from the asset value.

It has a trailing PE of 48 times and a forward PE of 10 times. Its forward dividend yield is 2.6%.

I bought 30,000 stock at an average price of US$4.63. At the lowest point on 18 May 2020, the price as $3.52. I had a paper loss of $33,300. I ignored the loss and kept the stock because of its large discount to the asset value.

The stock moved up 25% over the past three months and is now at $4.65. My paper loss has fully disappeared. 

I expect the stock to move up towards its value (which I project to be $6.50 i.e. 40% of the asset value). At that price, the PE ratio would be 14 times and the dividend yield would be 1.9%.

Tan Kin Lian