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<Research>BofAS Cuts TPs on SHK PPT, WHARF HOLDINGS on Policy Uncertainty Weighing on High-end Residential Demand
Recommend 24 Positive 31 Negative 21 |
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Although the new outbound investment guidelines of Mainland China are not directly targeting the property sector, they may heighten the difficulty and delay of capital outflows, potentially tightening liquidity in the Hong Kong market and upsetting buyers' price expectations, particularly affecting large lump-sum purchases, BofA Securities said in its report. The broker expected home price growth to moderate for the remainder of the year. It maintained its forecast of about 10% growth in full-year home prices, but believed that a 15% or more aggressive increase is unlikely to materialize. Addressing the above uncertainties, the broker trimmed the target prices of three Hong Kong property stocks. The TP of SHK PPT (00016.HK) was chopped by 6% to HKD136 to reflect uncertainties in high-end residential demand, with a Neutral rating maintained. The TP of WHARF HOLDINGS (00004.HK) was reduced by 9% to HKD26 on similar concerns over slowing high-end residential demand, with a Neutral rating maintained. The TP of HANG LUNG PPT (00101.HK) was axed by 14% to HKD9.5 to reflect the recent slowdown in luxury consumption in the mainland, while a Buy rating was maintained. The broker continued to favor landlords with attractive valuations and defensive property plays, maintaining Buy ratings on LINK REIT (00823.HK) and SWIREPROPERTIES (01972.HK). Among defensive developers, it preferred SINO LAND (00083.HK) and CK ASSET (01113.HK). It maintained Underperform ratings on NEW WORLD DEV (00017.HK) and MTR CORPORATION (00066.HK), citing concerns over high leverage and sizable capex, respectively. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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