Equity Analysis /
Hong Kong

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

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    Steven MAK
    Will Chu
    25 March 2022
    Published by

    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.