HK : Kerry Properties - May see more non-core asset disposals

Kerry’s FY21 underlying profit (excluding share disposal gains) jumped 48% yoy, as its associate KLN recorded one-off gains on asset disposals. Recent land acquisitions have used up the proceeds retained from its share disposal gains; we think Kerry will proceed with more non-core asset sale. Reiterate Add on Kerry with a lower TP of HK$28.9 (55% discount to NAV); we see its current valuation (0.26x P/BV and 6.2% FY22F yield) as attractive.