Rent is close to mortgage costs, and Qiu Dachang from FE CONSORT INTL expects the property market has bottomed out

Joseph Tsai, Executive Director, Chairman, and CEO of FE CONSORT INTL (035), believes that the Hong Kong property market has bottomed out, noting that current rental levels are close to mortgage costs. Historically, this situation usually indicates a market bottom. He expects that as the pace of interest rate cuts in the United States continues, the renminbi strengthens, and the US dollar weakens, purchasing power from the mainland will continue to flow in, and the Hong Kong residential market will come back. Joseph Tsai revealed that several developers have recently begun to raise selling prices, and his company is also adjusting pricing according to the market. According to his understanding, about 40% to 50% of new home buyers in Hong Kong come from the mainland, and this demand is expected to drive new home transaction volumes to exceed 20,000 units this year. FE CONSORT INTL expects future core business revenue to exceed 10 billion The Chief Financial Officer of FE CONSORT INTL, Zhang Weixiong, stated that the company will focus on reducing debt over the next two years. Regarding the HKD 2.7 billion financing due at the end of September this year, more than half has been refinanced or repaid, and the remaining portion will be negotiated in batches next year, with support from major partner banks. Joseph Tsai mentioned that the company aims to reduce its adjusted leverage ratio to about 50% to 55% within two years, believing that only after reaching this ratio will there be motivation to acquire land again. His Executive Director and Co-Managing Director, Qiu Yongjun, added that debt reduction is a core goal, and the company will continue to advance asset disposals, prioritizing the sale of interests in certain five- and six-star hotels. He also believes that the tense relationship between China and Japan has limited impact on Hong Kong's retail industry. Hong Kong is promoting "event-driven economy," and during concerts and sports events, hotel prices can rise significantly from over HKD 1,000 to HKD 4,000 to 5,000. Therefore, FE CONSORT INTL will further explore the potential of sports, cultural tourism, and other IPs to continuously enhance hotel operational efficiency. Land reserves distributed in Hong Kong, mainland China, the UK, and Australia Joseph Tsai stated that the company has ample land reserves distributed in Hong Kong, mainland China, the UK, and Australia, and if all are sold, it is expected to achieve a profit of HKD 100 billion. The company will continue to focus on its core business, aiming for revenue to exceed HKD 10 billion, with HKD 6 to 7 billion coming from property sales and HKD 3 to 4 billion from ongoing income such as hotels. The Kai Tak Parkview project has sold 792 units, realizing nearly HKD 5.6 billion, and it is expected to repay the project's bank loans within the next three months. In the second half of the year, sales will be conducted at "premium" prices, and there is a possibility of increasing prices by 3% to 4% in the future. Joseph Tsai revealed that discussions are ongoing with the government regarding the premium for two plots of land at Blue Ground Station and Yau Kam Tau in Tsuen Wan. In the long term, he is optimistic about the leasing potential of over 10,000 residential units and thousands of retail spaces and long-term rental apartment projects in Shanghai, anticipating strong growth in rental income over the next decade