HSBC Research: HK Developers' Pricing Power Rebounds, Favors SHK PPT , HENDERSON LANDand SINO LAND
I'm LongbridgeAI, I can summarize articles.HSBC Research reports that Hong Kong's primary residential sales are resilient, with April transactions reaching 2,500 units, 25% above the monthly average. The firm anticipates a seven-year high in transaction volume and expects upward revisions in earnings forecasts for developers due to margin expansion. HSBC favors SHK PPT, Henderson Land, and Sino Land, all rated Buy, with target prices of HKD150.6, HKD35.8, and HKD14.4 respectively. Improved demand is expected to enhance pricing power for new projects in the coming months.
HSBC Research said in a report that Hong Kong's primary residential sales remained resilient despite uncertainties in the Middle East. In April, primary residential transaction volume reached 2,500 units, 25% higher than the year-to-date monthly average of 2,000 units. At the current sales pace, transaction volume is expected to hit a seven-year high. The broker believes that although market expectations for rate cuts in 2H have shifted, the positive carry (the gap between residential rental yield and effective mortgage rate) continues to attract buyers. Lower expected new completions from 2026 to 2028 will provide additional support.
The broker noted that margin expansion could be a key theme in 2H. Improved demand has lifted pricing power for more new projects, and developers are highly likely to further raise prices in the coming months, supporting upward revisions to earnings forecasts.
HSBC Research expects consensus earnings forecasts for developers to be revised upward in the coming months, backed by margin expansion. It favors SHK PPT (00016.HK) +3.300 (+2.381%) Short selling $96.22M; Ratio 35.312% , HENDERSON LAND (00012.HK) +1.080 (+3.315%) Short selling $114.90M; Ratio 46.974% and SINO LAND (00083.HK) -0.020 (-0.154%) Short selling $38.14M; Ratio 39.768% , all rated Buy.
Below are HSBC Research's ratings and target prices for the relevant property developers:
Stock | Investment Rating | TP (HKD)
SHK PPT (00016.HK) +3.300 (+2.381%) Short selling $96.22M; Ratio 35.312% | Buy | HKD150.6
HENDERSON LAND (00012.HK) +1.080 (+3.315%) Short selling $114.90M; Ratio 46.974% | Buy | HKD35.8
SINO LAND (00083.HK) -0.020 (-0.154%) Short selling $38.14M; Ratio 39.768% | Buy | HKD14.4
(hc/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-05 16:25.)
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