Sino Land to launch The Avery next week

Its target completion is in April, 2014.

According to Maybank Kim Eng, Sino Land uploaded the sales brochure of The Avery (16 Hau Wong Road, Kowloon City) yesterday and the market expects that it will be launched next Thursday at the soonest, which would be the 2nd project in the lunar year of snake. 

"The single block project, which comprises of 78 units, is located within the Primary One Admission school net 41."

Here's more:

According to HK Economic Journal, all units will have a GFA of 450 sq ft or less, with efficiency ratio of approx. 72%. The project is expected to be completed by end-April 2014, or in 14 months. 

Implication: The launch is in line with the management guidance we received in end-January. The Graces at The Providence Bay will be the 2ndproject of the group to be launched within the quarter.

We believe that the good responses from the sales of Residence 88 (Yuen Long, developed by SHK Properties (16)) will help in boosting the sales of The Avery. 

Action: Share price of SL enjoyed a strong rally with strong property sales and completion pipeline in FY6/12. It has been re-rated from an average discount of 30% since the 1990‘s to the recent average of 23% in the 2000‘s, likely due to the improved execution in HK development and investment segments, and historical low net gearing, in our view.

The developer is trading at 32% discount to consensus RNAV of HKD21.04 per share, and only 6% away from consensus target price, which we believe is fair. We will take up coverage on the name upon better potential share price upside.