SINO Land is a property development and investment company which also has interests in hotel operations. Brokerage ABN Amro Hoare Govett Asia recently put a buy on the stock, saying the company's fundamentals had been overlooked. Sino Land is one of the market's purest property plays and has built up a high-quality land bank that will provide earnings at least until 2002. The company has several residential projects soon to be completed and has therefore entered a period of high earnings growth. Over the next three financial years, the developer is expected to produce an impressive average growth rate of 32.8 per cent. Sino Land shares are trading at a heavy discount to the company's net asset value, which is unreasonable given its proven quality as a developer. The company's debt level is high, but does not represent financial difficulty, especially with the cash inflow from projects nearing completion and $1.5 billion expected to be reaped from the conversion of warrants. Sino Land also has a portfolio of $3.7 billion worth of listed shares which can provide additional liquidity if the need arises.
