M Stanley Predicts 4% Decline in CK ASSET (01113.HK) FY25 Underlying EPS and 2% Increase in DPS
Earnings Forecast: Morgan Stanley predicts CK ASSET's underlying EPS for FY25 will decline by 4% YoY to HKD3.77, slightly below the street consensus of HKD3.78.
Dividend Expectations: The full-year DPS is expected to grow by 2% YoY to HKD1.77, which is also below the street consensus of HKD1.79.
Property Development Margin: The margin from the BLUE COAST project is anticipated to decrease to 14%, indicating challenges in property development profitability.
Broker Rating and Target Price: Morgan Stanley maintains an Overweight rating for CK ASSET with a target price set at HKD47, awaiting management's insights on the Hong Kong property market and UK railway asset sales.
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<HK Home> Grand Jete Phase 1 Sells 2-Bedroom Apartment for HKD 5.1M; CK ASSET's Moni Yeung Predicts 10% Annual Increase in Home Prices
Property Transaction: CK Asset sold a two-bedroom unit at Grand Jete Phase 1 in Tuen Mun for HKD5.1 million, translating to approximately HKD11,038 per square foot, with a transaction period of 180 days.
Market Outlook: Moni Yeung from CK Asset anticipates a steady upward trend in Hong Kong's property market during the Year of the Horse, predicting a 10% increase in home prices for the year.
<Midday Update> HSI Ends Midday at 26,705, Gaining 138 Points; HSTI Reaches 5,367, Up 7 Points; ZIJIN MINING Surges Over 4%; HK & CHINA GAS, CK ASSET, WH GROUP, TIANGONG INT'L, and CONCH VENTURE Achieve New Record Highs
Market Performance: The Hang Seng Index (HSI) rose by 138 points (0.5%) to 26,705, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw slight gains.
Active Heavyweights: Notable movements included HKEX (+0.9%), PING AN (+0.4%), and TENCENT (+0.2%), while XIAOMI, BABA, and MEITUAN experienced minor declines.
Significant Movers: ZIJIN MINING surged by 4.7%, CHINAHONGQIAO increased by 3.9%, and CNOOC rose by 3.7%, while YUM CHINA fell by 4.6%.
Short Selling Trends: High short selling ratios were observed in several stocks, with YUM CHINA at 47.6% and MEITUAN at 25.8%, indicating significant market speculation.
CKA to Launch 4 New Projects in Year of the Horse, Featuring Approximately 1,900 Units
Property Launch Plans: CK ASSET plans to launch four new property projects in the Year of the Horse, totaling approximately 1,872 units, including urban developments like "Victoria Blossom" in Kai Tak and a luxury residence in Mid-Levels.
Market Outlook: The Chief Manager of Sales at CK ASSET anticipates a continued rebound in the property market, predicting a 10% increase in property prices during the Year of the Horse.
UBS: Valuations of Hong Kong Homebuilders Rising; Stock Picks Favor Low Debt, High Dividend, and Buyback Strategies
Market Overview: The Hong Kong real estate sector began 2026 positively, with several stocks nearing historical highs, prompting UBS to adopt a selective investment strategy due to rising valuations.
Preferred Stocks: UBS favored stocks with low net gearing ratios, including SINO LAND, CK ASSET, and KERRY PPT, citing lower risks of equity-related issuance amid slow industry deleveraging.
Dividend Focus: The broker also highlighted stocks with sustainable high dividends, such as SWIREPROPERTIES, SINO LAND, and KERRY PPT, while identifying potential valuation re-rating opportunities for stocks with low PB ratios.
Target Price Adjustments: UBS raised target prices for several stocks, including SINO LAND and CK ASSET, while maintaining a cautious stance on HENDERSON LAND, HYSAN DEV, and MTR CORPORATION.
BofAS Increases Target Prices for Hong Kong Property Developers by Approximately 10%, Chooses LINK REIT as Underperformer
Investor Sentiment: BofA Securities reports that investors are optimistic about the real estate market's recovery, leading to an average 10% increase in target prices for several real estate stocks due to strong sales in Hong Kong.
Stock Preferences: The broker favors CK ASSET and SINO LAND for their earnings sensitivity to property price growth, while SWIRE PROPERTIES and HANG LUNG PPT are preferred for their higher dividend yields amidst resilient luxury retail in mainland China.
Non-Consensus Pick: LINK REIT is highlighted as a non-consensus laggard due to its widened valuation gap with peers and short-term challenges in e-commerce, despite a high dividend yield.
Market Outlook: BofA Securities has adjusted its FY25-28 EPS forecasts for HYSAN DEV and provided detailed ratings and target prices for Hong Kong property developers and landlords in a separate table.
M Stanley Predicts 10% Increase in Home Prices and 5% Rise in Rents This Year, Recommends SHKP, CKA, and Henderson
Market Outlook: Morgan Stanley forecasts a 10% increase in Hong Kong home prices and a 5% rise in rents for the year, while expecting increased stock price volatility ahead of earnings releases.
Preferred Stocks: The broker favors SHK PPT, CK ASSET, and HENDERSON LAND, all rated Overweight, while avoiding WHARF HOLDINGS and NEW WORLD DEV, which are rated Underweight.
Mainland Influence: Joseph Tsang from JLL highlighted that strong purchasing power from mainland buyers is expected to drive a 5% increase in home prices this year, following a market bottom last year.
Market Dynamics: Interest rate cuts and favorable capital market conditions may boost the property market, although geopolitical risks and macro uncertainties could exert downward pressure.
<HK Home> Grand Jete Phase 1 Sells 2-Bedroom Apartment for HKD 5.1M; CK ASSET's Moni Yeung Predicts 10% Annual Increase in Home Prices
Property Transaction: CK Asset sold a two-bedroom unit at Grand Jete Phase 1 in Tuen Mun for HKD5.1 million, translating to approximately HKD11,038 per square foot, with a transaction period of 180 days.
Market Outlook: Moni Yeung from CK Asset anticipates a steady upward trend in Hong Kong's property market during the Year of the Horse, predicting a 10% increase in home prices for the year.
<Midday Update> HSI Ends Midday at 26,705, Gaining 138 Points; HSTI Reaches 5,367, Up 7 Points; ZIJIN MINING Surges Over 4%; HK & CHINA GAS, CK ASSET, WH GROUP, TIANGONG INT'L, and CONCH VENTURE Achieve New Record Highs
Market Performance: The Hang Seng Index (HSI) rose by 138 points (0.5%) to 26,705, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw slight gains.
Active Heavyweights: Notable movements included HKEX (+0.9%), PING AN (+0.4%), and TENCENT (+0.2%), while XIAOMI, BABA, and MEITUAN experienced minor declines.
Significant Movers: ZIJIN MINING surged by 4.7%, CHINAHONGQIAO increased by 3.9%, and CNOOC rose by 3.7%, while YUM CHINA fell by 4.6%.
Short Selling Trends: High short selling ratios were observed in several stocks, with YUM CHINA at 47.6% and MEITUAN at 25.8%, indicating significant market speculation.
CKA to Launch 4 New Projects in Year of the Horse, Featuring Approximately 1,900 Units
Property Launch Plans: CK ASSET plans to launch four new property projects in the Year of the Horse, totaling approximately 1,872 units, including urban developments like "Victoria Blossom" in Kai Tak and a luxury residence in Mid-Levels.
Market Outlook: The Chief Manager of Sales at CK ASSET anticipates a continued rebound in the property market, predicting a 10% increase in property prices during the Year of the Horse.
UBS: Valuations of Hong Kong Homebuilders Rising; Stock Picks Favor Low Debt, High Dividend, and Buyback Strategies
Market Overview: The Hong Kong real estate sector began 2026 positively, with several stocks nearing historical highs, prompting UBS to adopt a selective investment strategy due to rising valuations.
Preferred Stocks: UBS favored stocks with low net gearing ratios, including SINO LAND, CK ASSET, and KERRY PPT, citing lower risks of equity-related issuance amid slow industry deleveraging.
Dividend Focus: The broker also highlighted stocks with sustainable high dividends, such as SWIREPROPERTIES, SINO LAND, and KERRY PPT, while identifying potential valuation re-rating opportunities for stocks with low PB ratios.
Target Price Adjustments: UBS raised target prices for several stocks, including SINO LAND and CK ASSET, while maintaining a cautious stance on HENDERSON LAND, HYSAN DEV, and MTR CORPORATION.
BofAS Increases Target Prices for Hong Kong Property Developers by Approximately 10%, Chooses LINK REIT as Underperformer
Investor Sentiment: BofA Securities reports that investors are optimistic about the real estate market's recovery, leading to an average 10% increase in target prices for several real estate stocks due to strong sales in Hong Kong.
Stock Preferences: The broker favors CK ASSET and SINO LAND for their earnings sensitivity to property price growth, while SWIRE PROPERTIES and HANG LUNG PPT are preferred for their higher dividend yields amidst resilient luxury retail in mainland China.
Non-Consensus Pick: LINK REIT is highlighted as a non-consensus laggard due to its widened valuation gap with peers and short-term challenges in e-commerce, despite a high dividend yield.
Market Outlook: BofA Securities has adjusted its FY25-28 EPS forecasts for HYSAN DEV and provided detailed ratings and target prices for Hong Kong property developers and landlords in a separate table.
M Stanley Predicts 10% Increase in Home Prices and 5% Rise in Rents This Year, Recommends SHKP, CKA, and Henderson
Market Outlook: Morgan Stanley forecasts a 10% increase in Hong Kong home prices and a 5% rise in rents for the year, while expecting increased stock price volatility ahead of earnings releases.
Preferred Stocks: The broker favors SHK PPT, CK ASSET, and HENDERSON LAND, all rated Overweight, while avoiding WHARF HOLDINGS and NEW WORLD DEV, which are rated Underweight.
Mainland Influence: Joseph Tsang from JLL highlighted that strong purchasing power from mainland buyers is expected to drive a 5% increase in home prices this year, following a market bottom last year.
Market Dynamics: Interest rate cuts and favorable capital market conditions may boost the property market, although geopolitical risks and macro uncertainties could exert downward pressure.
