--- title: "BofAS Projects Solid Interim Results for HK Property Stocks, Prefers Hongkong Land/ LINK REIT" type: "News" locale: "en" url: "https://longbridge.com/en/news/292715434.md" description: "BofA Securities projects solid 1H26 results for HK property stocks, citing improved margins and FX tailwinds. Top picks include Hongkong Land and LINK REIT for landlords, and Henderson Land for developers. Average core profit growth is forecast at 8% YoY, with Hysan, Henderson, CK Asset, and SHK PPT leading gains. Target prices were lowered by an average of 2%, except for a 12% increase for CK Asset. Dividend expectations are positive across major players." datetime: "2026-07-15T05:30:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292715434.md) - [en](https://longbridge.com/en/news/292715434.md) - [zh-HK](https://longbridge.com/zh-HK/news/292715434.md) generator: "portal-rs" --- # BofAS Projects Solid Interim Results for HK Property Stocks, Prefers Hongkong Land/ LINK REIT BofA Securities published a research report expecting the Hong Kong property sector to post solid results in 1H26, on the back of a strong recovery in development property margins, an earlier rebound in rental income, and a 6% YoY appreciation of the RMB in 1H26 creating FX tailwinds for companies with mainland operations. However, apart from dividends, investors were expected to focus on the timing of a rebound in primary residential sales after the slowdown since June, as well as the outlook for US interest rates. The broker continued to prefer landlords amid meager residential sales. Among them, Hongkong Land remained its top pick due to rental growth in Central office properties, while LINK REIT (00823.HK) +0.380 (+1.001%) Short selling $27.19M; Ratio 18.308% was also top pick for the resumption of share buybacks and potential asset disposals. For investors with a more constructive view on the property market recovery, the broker preferred HENDERSON LAND (00012.HK) +1.180 (+4.591%) Short selling $73.01M; Ratio 53.329% because of its strong earnings rebound. Meanwhile, the broker maintained Underperform ratings on MTR CORPORATION (00066.HK) +0.120 (+0.384%) Short selling $14.66M; Ratio 23.835% given its sizable capex plans and NEW WORLD DEV (00017.HK) +0.120 (+1.852%) Short selling $2.24M; Ratio 18.139% on high leverage. Excluding NEW WORLD DEV, which was expected to record a net loss, the broker forecast Hong Kong property stocks to report average core profit growth of 8% YoY in their upcoming 1H26 results. It expected HYSAN DEV (00014.HK) +0.160 (+0.922%) Short selling $315.92K; Ratio 6.336% , HENDERSON LAND, CK ASSET (01113.HK) +1.100 (+2.415%) Short selling $10.94M; Ratio 20.044% and SHK PPT (00016.HK) +4.200 (+3.578%) Short selling $101.58M; Ratio 34.759% to deliver the strongest earnings growth, with increments of 51%, 16%, 10% and 8%, respectively, on development property bookings, development property margins or energy businesses. However, the broker lowered TPs for Hong Kong property stocks by an average of 2%, including broad-based cuts for landlords to reflect waning mainland consumption trends and their impact on tourist spending and mainland mall revenue. In addition, the broker raised the TP for CK ASSET by 12%, owing to narrowing discounts to NAV resulting from its asset disposal and value-unlocking initiatives. The broker forecast SWIREPROPERTIES (01972.HK) +0.460 (+2.170%) Short selling $2.07M; Ratio 12.101% to raise interim DPS by 3%; Hongkong Land's interim DPS was expected to surge 50% from normal levels due to a rebalancing of the interim/final dividend payout ratio; CK ASSET was expected to raise interim DPS by 3%; and SHK PPT was forecast to increase FY2026 DPS by 5%. In addition, CK ASSET management indicated that it may distribute a moderate special dividend following the disposal of its stake in UK electricity distributor UKPN. The broker has not yet incorporated the special dividend into its forecasts. Assuming disposal proceeds of HKD8.4 billion, every 10% of disposal gains would be equivalent to HKD0.24 per share. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-15 12:25.) ### Related Stocks - [00823.HK](https://longbridge.com/en/quote/00823.HK.md) - [00014.HK](https://longbridge.com/en/quote/00014.HK.md) - [00016.HK](https://longbridge.com/en/quote/00016.HK.md) - [00012.HK](https://longbridge.com/en/quote/00012.HK.md) - [H78.SG](https://longbridge.com/en/quote/H78.SG.md) - [01113.HK](https://longbridge.com/en/quote/01113.HK.md) - [00066.HK](https://longbridge.com/en/quote/00066.HK.md) - [00017.HK](https://longbridge.com/en/quote/00017.HK.md) - [01972.HK](https://longbridge.com/en/quote/01972.HK.md) - [80016.HK](https://longbridge.com/en/quote/80016.HK.md) ## Related News & Research - [JPM: Short-term Property Mkt Sentiment Turning Cautious; Landlords Preferred Over Developers](https://longbridge.com/en/news/296853893.md) - [Hysan Development announces publication of FY2026 interim report](https://longbridge.com/en/news/297296974.md) - [Link REIT files HKEX next-day disclosure return on unit buyback for treasury holdings](https://longbridge.com/en/news/297168393.md) - [CK Asset FY26 H1 profit attributable to shareholders climbs 37.8% to HK$ 8.68 billion](https://longbridge.com/en/news/297150989.md) - [Link REIT files HKEX next-day disclosure return on unit buyback at HKD 39.25](https://longbridge.com/en/news/297299732.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**