Daiwa Capital Markets: Maintains "In Line with the Market" View on the Hong Kong and China Real Estate Sector, Upgrades KERRY PPT to "Buy"
Daiwa Capital Markets released a research report stating that it currently maintains a "Market Perform" rating for the real estate sector in mainland China and Hong Kong, with major stock picks being CHINA RES LAND and SHK PPT, both rated "Buy," with target prices of HKD 34.1 and HKD 106.9, respectively. The firm upgraded KERRY PPT's rating to "Buy," maintaining a target price of HKD 22.8, believing that although the construction costs for the Jinling Huating project are relatively high, it is still expected to achieve decent profits after the residential portion is completed in 2027, which will help enhance the company's core net profit. The recent decline in stock prices may provide an attractive entry opportunity for investors. The first batch of units for the second phase of KERRY PPT's Shanghai residential project, Jinling Huating, sold out immediately on the day of launch, with a subscription rate of 190% and an average selling price of RMB 205,000 per square meter, an increase of RMB 16,000 compared to the launch in March this year. Data shows that buyers are mainly self-occupiers aged 35 to 55 from high-income industries. Daiwa Capital Markets believes this reflects a steady trend in residential demand in mainland China, although investment sentiment remains weak. Market data for October also showed a year-on-year decline in transactions for both new and second-hand homes nationwide, indicating weakened investment demand in major cities
According to the Zhitong Finance APP, Daiwa Capital Markets has released a research report stating that it currently maintains a "market perform" rating for the real estate sector in mainland China and Hong Kong. The main stock picks are China Resources Land (01109) and Sun Hung Kai Properties (00016), both rated "Buy," with target prices of HKD 34.1 and HKD 106.9, respectively.
The firm has upgraded KERRY PPT's rating to "Buy," maintaining a target price of HKD 22.8. It believes that although the construction costs for the Jinling Huating project are relatively high, it still expects to achieve decent profits after the residential portion is completed in 2027, which will help enhance the company's core net profit. The recent decline in stock prices may provide an attractive entry opportunity for investors.
KERRY PPT (00683) sold out the first batch of units for the second phase of its Shanghai residential project, Jinling Huating, on the day of its launch, achieving a subscription rate of 190%, with an average selling price of RMB 205,000 per square meter, an increase of RMB 16,000 compared to the launch in March this year. Data shows that buyers are mainly self-occupiers aged 35 to 55 from high-income industries. Daiwa Capital Markets believes this reflects a steady demand for residential properties in mainland China, although investment sentiment remains weak. Market data from October also indicates a year-on-year decline in transactions for both new and second-hand homes nationwide, suggesting weakened investment demand in major cities
