Citigroup raises target price for Hopson Dev't to HK$15.47

Sep. 17, 2009 (China Knowledge) - U.S.-based financial services company Citigroup Inc recently raised its target price for shares of Hopson Development Holdings Ltd<0754> to HK$15.47 from the previous HK$9.87 and retained its "buy" rating for the Hong Kong-listed developer.

Citigroup said in a report that there still exists management risk in Hopson Development, but that the developer's intrinsic value cannot be disregarded.

Hopson Development reported HK$906 million in net profit for the first half of this year, a decline of 3% year on year. However, in the first six months, the firm's core earnings increased 35% from a year earlier and its net gearing ratio declined to 43%.

By the end of June, Hopson Development had 2.91 million sq m of land reserves, most of which are in first-tier cities.

Hopson Development's contracted sales revenue surged 77% year on year to more than HK$9 billion in the first eight months, according to an earlier report from China Knowledge.