According to a Citi report, HENDERSON LAND (00012.HK) -0.200 (-0.753%) Short selling $26.37M; Ratio 28.846% plans to issue HKD8 billion convertible bonds (CB). CB refinancing seems to be a solution for its estimated annual capital expenditure of HKD7-8 billion (including Central Site 3: around HKD2 billion), but it is relatively small compared to its borrowings (HKD86 billion by December 2024) or shareholder loans (HKD66 billion).While its 0.5% coupon rate is competitive compared to the average financing cost of 4.2% in 2024, which may save about HKD300 million in annual interest expenses (around 3% of profits) and partially offset the maximum 4.4% dilution impact on EPS, the broker believes that this CB issuance may suggest an undervaluation of equity costs, which could be more significant for some minority shareholders.Related NewsCLSA: Considering Div. & Potential Fundraising Risks, SINO LAND (00083.HK) Preferred Among HomebuildersBecause of CB pressure and a decline in profits in 1H, Citi predicted HENDERSON LAND's stock price to experience adjustments in the near term. Concerns about further CB issuance or equity financing also put pressure on the industry, especially regarding credit tightening for smaller companies.In Citi's estimate, HENDERSON LAND's profits will decline by 30-40% YoY in 1H25, while its interim dividends per share will remain stable at HK50 cents. The company's full-year dividends per share are anticipated to be stable on breakeven cashflow after dividend.Citi kept a Buy rating on HENDERSON LAND with a target price of HKD25.6.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-16 12:25.)Related NewsCiti Sees CN Policy Support as Key Catalyst for HK Developers; Top Picks SWIREPROPERTIES, LINK REIT