BofAS Cuts TP on SHK PPT and WHARF HOLDINGS on Policy Uncertainty Weighing on High-end Residential Demand
I'm LongbridgeAI, I can summarize articles.BofAS cut target prices for SHK PPT, Wharf Holdings, and Hang Lung Properties due to policy uncertainty suppressing high-end residential demand in Hong Kong. The broker expects home price growth to moderate, maintaining a 10% full-year forecast but ruling out aggressive increases. While lowering TP on these three stocks, BofAS maintained Buy ratings on LINK REIT and Swire Properties, favoring defensive plays with attractive valuations.
BofAS published a report noting that although the mainlands new outbound investment guidelines are not directly targeting the property sector, they may increase the difficulty and delay of capital outflows, potentially tightening liquidity in the Hong Kong market and suppressing buyers price expectations, particularly affecting transactions of large-value properties. The report expects home price growth to moderate for the remainder of the year. It maintains its forecast of about 10% growth in full-year home prices, but believes that a 15% or more aggressive increase is unlikely to materialize.
In response to the above uncertainties, the broker lowered the target prices of three Hong Kong property stocks. The TP of SHK PPT (00016.HK) -4.100 (-3.206%) Short selling $127.97M; Ratio 19.869% was cut by 6% to HKD136 to reflect uncertainties in high-end residential demand. The new TP is based on a 40% discount to net asset value, with a Neutral rating maintained. The TP of WHARF HOLDINGS (00004.HK) -1.160 (-4.911%) Short selling $4.72M; Ratio 21.361% was reduced by 9% to HKD26 on similar concerns over slowing high-end residential demand, with a Neutral rating maintained. The TP of HANG LUNG PPT (00101.HK) -0.140 (-1.750%) Short selling $16.32M; Ratio 37.370% was lowered by 14% to HKD9.5 to reflect the recent slowdown in luxury consumption in the mainland, while a Buy rating was maintained.
The broker continues to favor landlords with attractive valuations and more defensive property plays, maintaining Buy ratings on LINK REIT (00823.HK) -0.280 (-0.714%) Short selling $49.14M; Ratio 30.084% and SWIREPROPERTIES (01972.HK) -0.260 (-1.146%) Short selling $3.21M; Ratio 13.563% . Among defensive developers, it prefers SINO LAND (00083.HK) -0.220 (-1.863%) Short selling $17.40M; Ratio 41.297% and CK ASSET (01113.HK) -1.380 (-2.887%) Short selling $26.13M; Ratio 28.982% . It maintains Underperform ratings on NEW WORLD DEV (00017.HK) -0.170 (-2.120%) Short selling $6.82M; Ratio 24.298% and MTR CORPORATION (00066.HK) -0.180 (-0.570%) Short selling $23.87M; Ratio 43.941% , citing concerns over high leverage and sizable capital expenditure, respectively. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-03 12:25.)