MS-SHKP@EC2612A

CCOE

ONEFORCE HLDGS

ROYAL DELUXE

STARCOIN GROUP

ASIAPAC FIN INV

DRINDA

WAI HUNG GROUP

WELIFE TECH

MAINLAND HOLD

JOHNSON ELEC H

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Hong Kong stocks are set for their worst monthly decline since October, with the Hang Seng Index down 3.2% amid concerns over AI's impact on traditional industries. The index rose 0.6% to 26,545.09 on Friday, while the Hang Seng Tech Index gained 0.9%. Sun Hung Kai Properties saw a 5.4% increase in shares after reporting a 36% profit rise. Global markets remain cautious, with Japan's Nikkei 225 down 0.7% and South Korea's Kospi down 2.1%.

南华早报

SHK PPT

Hang Seng TECH Index

Hang Seng Index

Pro Ultrshrt Yen

Hong Kong stocks head for worst month since October on AI disruption angst

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Hong Kong stocks rebounded after the futures settlement day, with the Hang Seng Index rising 197 points to 26,578 points in the first half of the day. In the real estate sector, Sun Hung Kai Properties rose nearly 7%, with a 17% increase in half-year underlying profit. In the technology sector, both Tencent and Meituan saw increases, rising 2.8% and 2.1% respectively. The overall market turnover was HKD 121.827 billion

AASTOCKS

Tencent Holdings Limited

TENCENT

Tencent

MEITUAN

Meituan

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FI2CAMNDQ100

FL2 CSOP HSI

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ISHARESHSI

CSOP HS TECH

Krne Csi China Internet

TRACKER FUND

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"Hong Kong Stocks" The Hang Seng Index rose 197 points in the half-day, New World Development increased nearly 7%, Tencent and Meituan performed well

Goldman Sachs reported that New World Development's performance for the first half of the 2026 fiscal year met expectations, with dividends increasing by 3% year-on-year to HKD 0.98, indicating management's increased confidence in the business outlook. The company maintains a dividend policy of distributing 40% to 50% of its underlying net profit for the full year, with an expected total dividend of HKD 3.96 for the year, representing a 6% year-on-year increase. Goldman Sachs raised its earnings per share forecast for the fiscal years 2027 to 2028 by 2% to HKD 13, and increased the target price from HKD 159 to HKD 164, maintaining a "Buy" rating

Goldman Sachs raises New World Development's target price to HKD 164, with first half fiscal year performance in line with expectations

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SHK PPT announced its fiscal year 2026 results, with a revenue of HKD 52.705 billion and a net profit of HKD 10.247 billion, representing year-on-year growth of 32% and 36.2%, respectively. Citigroup raised its target price from HKD 105 to HKD 168, maintaining a "Buy" rating, and expects sales in fiscal year 2026 to exceed HKD 35 billion, with a dividend growth of 3%. During the period, property sales profit reached HKD 4.885 billion, while rental income remained flat. The group's net debt ratio is 13.5%, and the interest coverage ratio is 8.7 times

ChinaAMC CSI All Share Real Estate ETF

Hwabao WP CSI 800 Real Estate ETF

China Southern CSI All Share Real Estate ETF

The article "After the Performance" summarizes the latest target prices and views of major banks after Sun Hung Kai Properties announced its earnings

Citigroup's research report indicates that New World Development is expected to see a profit rebound that will drive a compound annual growth rate of 7% in earnings per share and dividends in the fiscal year 2028. Based on an optimistic forecast for Hong Kong sales in the fiscal year 2026, Citigroup has raised its target price from HKD 105 to HKD 168 and maintained a "Buy" rating. It is expected that the dividend per share for the fiscal years 2026 to 2028 will be HKD 3.88, HKD 4.15, and HKD 4.50 respectively, assuming a payout ratio of 50%

Citi expects New World Development's profit rebound to drive earnings per share and dividend growth, raising the target price from HKD 105 to HKD 168

Morgan Stanley's report pointed out that New World Development's interim dividend per share increased by 3% year-on-year, exceeding expectations, but the implied dividend yield of 2.8% is not attractive. The contract sales for the first half of the fiscal year were approximately HKD 17.4 billion, with full-year sales expected to exceed HKD 30 billion. The outlook for Hong Kong's office and retail sectors is positive, with the net debt ratio reduced to 13.5%, and the real interest rate of 3% has led to a 37% decrease in interest expenses. Morgan Stanley has given New World Development an "Overweight" rating, with a target price of HKD 120

Morgan Stanley: New World Development's mid-term interest exceeds expectations, but the 2.8% implied dividend yield lacks attractiveness

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The Hong Kong stock ADR is expected to open 204 points higher this morning, reporting at 26,586 points. The relative stock prices and the premium situation of Hong Kong stocks to American Depositary Receipts are as follows: CKH Holdings HKD 63.893 (premium 1.42%), CLP Holdings HKD 73.278 (premium 0.17%), HK & China Gas HKD 7.155 (premium 5.24%), Wharf Holdings HKD 25.182 (premium 3.49%), HSBC HOLDINGS HKD 147.806 (discount -1.90%), Power Assets HKD 62.72 (premium 1.40%), PCCW HKD 6.163 (discount -4.11%), HENDERSON LAND HKD 33.706 (premium 2.18%), SHK PPT HKD 139.282 (discount -2.14%), NEW WORLD DEV HKD 10.167 (premium 3.08%), SWIRE PACIFIC A HKD 82.036 (discount -0.41%), BANK OF E ASIA HKD 15.563 (discount -2.40%), GALAXY ENT HKD 44.154 (discount -6.15%), HANG LUNG PPT HKD 9.916 (discount -0.26%), Geely Automobile HKD 19.101 (discount -14.61%), CITIC Limited HKD 12.302 (premium 0.39%), CATHAY PAC AIR HKD 13.86 (discount -1.15%)

HSBC HOLDINGS

CLP HOLDINGS

NEW WORLD DEV

HENDERSON LAND

CATHAY PAC AIR

HANG LUNG GROUP

HK & CHINA GAS

WHARF REIC

SWIRE PACIFIC A

SWIRE PACIFIC B

HANG LUNG PPT

WHARF HOLDINGS

CKH HOLDINGS

BANK OF E ASIA

POWER ASSETS

MIRAMAR HOTEL

PCCW

GALAXY ENT

The Hong Kong stock ADR is expected to open 204 points higher this morning, reporting at 26,586 points

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Sun Hung Kai Properties (SHKP) reported a 36.2% increase in first-half net profit to HK$10.25 billion, with revenue rising 32% to HK$52.7 billion. Despite missing revenue estimates, operating income exceeded forecasts. SHKP plans to launch several residential projects in Hong Kong and has sold out 1,400 flats at its Sierra Sea project. Investors are optimistic about SHKP due to its significant land holdings. Meanwhile, Hysan Development's annual earnings rose 28.3% to HK$2.5 billion, driven by property sales, although recurring profit fell slightly. Hysan anticipates challenges in 2026 but remains prepared for growth.

HYSAN DEV

GF CSI All Share Financials ETF

Yinhua CSI Interior Real Estate Theme ETF

SHKP, Hong Kong’s bellwether developer, posts 36% jump in first-half net profit

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Sun Hung Kai Properties' Profit, Revenue Rise in Fiscal H1

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Sun Hung Kai Properties' Profit, Revenue Rise in Fiscal H1

SHK PPT (016) reported a mid-term basic profit of HKD 12.213 billion, an increase of 16.7% year-on-year; the interim dividend per share is HKD 0.98, up 3.2%. Guo Binglian stated that the Hong Kong property market is gradually recovering, benefiting from factors such as lower mortgage rates and rising residential rents, with an optimistic economic outlook. SHK PPT plans to launch multiple residential projects for sale in the next 10 months, and the rental market is improving, with prime location properties still being the tenants' first choice. Total revenue during the period increased by 34%, and property sales revenue surged by 94%

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New World Development's interim underlying profit rose by 17%, with a 3% increase in dividends. Guo Binglian: The property market is gradually recovering, and Hong Kong has entered a new stage of high-quality development

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New World Development's half-year basic profit increased by 16.7% year-on-year to HKD 12.213 billion, with an interim dividend rising to HKD 0.98

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SUNLIGHT REIT

New World Development's half-year basic profit increased by 16.7% year-on-year to HKD 12.213 billion, with the interim dividend rising to HKD 0.98

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HSBC's research report indicates that Hong Kong's property market policies will continue to support the real estate market, and real estate investment trusts may welcome new opportunities. HSBC prefers New World Development, Henderson Land, and Sino Land, all of which are given a "Buy" rating, with target prices remaining unchanged. Although some developers' stock prices have fallen due to the increase in stamp duty, the bank believes this pullback is healthy, with limited impact, primarily aimed at increasing fiscal revenue. Overall policies still support the residential market, improving developers' profit outlook

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HSBC Research: The budget proposal has a positive stance on the property market, favoring New World Development, Henderson Land, and SINO LAND

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Hong Kong stocks ADR is expected to open 386 points higher this morning, at 27,152 points. The relative stock prices and the premium of Hong Kong stocks over ADRs are as follows: CKH HOLDINGS HKD 62.113 (-0.18%), CLP HOLDINGS HKD 75.569 (-0.69%), HK & CHINA GAS HKD 7.51 (1.46%), WHARF HOLDINGS HKD 25.19 (3.53%), HSBC HOLDINGS HKD 147.383 (-3.18%), POWER ASSETS HKD 61.41 (-0.18%), PCCW HKD 6.164 (-3.31%), HENDERSON LAND HKD 34.186 (1.15%), SHK PPT HKD 137.918 (-1.10%), NEW WORLD DEVELOPMENT HKD 10.814 (3.01%), SWIRE PACIFIC A HKD 83.196 (-0.48%), BANK OF E ASIA HKD 15.568 (-1.98%), GALAXY ENT HKD 44.278 (-2.25%), HANG LUNG PPT HKD 10.201 (-1.97%), GEELY AUTO HKD 19.107 (-12.86%), CITIC LIMITED HKD 12.305 (0.93%), CATHAY PAC AIR HKD 13.502 (0.36%)

SWIREPROPERTIES

GEELY AUTO

PCPD

HENDERSON INV

The Hong Kong stock ADR is expected to open 386 points higher this morning, reporting at 27,152 points

MS-SHKP@EC2612A(25559.HK)

Hong Kong stocks head for worst month since October on AI disruption angst

"Hong Kong Stocks" The Hang Seng Index rose 197 points in the half-day, New World Development increased nearly 7%, Tencent and Meituan performed well

Goldman Sachs raises New World Development's target price to HKD 164, with first half fiscal year performance in line with expectations

The article "After the Performance" summarizes the latest target prices and views of major banks after Sun Hung Kai Properties announced its earnings

Citi expects New World Development's profit rebound to drive earnings per share and dividend growth, raising the target price from HKD 105 to HKD 168