HSBC Research: Fundamentals of HK Property Stocks Improve; HYSAN DEV, SWIREPROPERTIES Rated Buy
I'm LongbridgeAI, I can summarize articles.HSBC Research reports improving fundamentals for HK property stocks, citing stronger sales, stable rents, and lower borrowing costs. The broker forecasts YoY earnings growth and recommends 'Buy' ratings for HYSAN DEV and SWIREPROPERTIES. HSBC expects higher dividends from major players like CK ASSET and LINK REIT, advising investors to focus on landlords with premium mall exposure and strong dividend visibility.
The fundamentals of Hong Kong property and conglomerate companies are improving, supported by stronger property sales, stabilizing rental income, asset monetization activities and lower borrowing costs, HSBC Global Investment Research said in a report.
The broker forecast sector earnings to improve YoY and extend the recovery momentum. It noted that the first batch of 138 units at SHK PPT (00016.HK) +1.300 (+1.066%) Short selling $157.48M; Ratio 35.387% 's Yuen Long project "Garden Regency" was fully sold over the past weekend, reflecting still healthy end-user demand. However, short-term residential transaction volumes are expected to remain subdued, which may affect market sentiment.
HSBC Global Investment Research expected higher DPS for property stocks, alongside potential growth in rents at premium shopping malls and improving guidance for residential sales margins. It projected CK ASSET (01113.HK) +0.040 (+0.083%) Short selling $35.69M; Ratio 25.397% , CKH HOLDINGS (00001.HK) +0.350 (+0.496%) Short selling $91.70M; Ratio 25.336% , SHK PPT (00016.HK) +1.300 (+1.066%) Short selling $157.48M; Ratio 35.387% , SWIREPROPERTIES (01972.HK) +0.020 (+0.090%) Short selling $8.49M; Ratio 19.941% , SWIRE PACIFIC A (00019.HK) +0.300 (+0.342%) Short selling $17.02M; Ratio 35.867% and LINK REIT (00823.HK) +0.380 (+0.969%) Short selling $70.40M; Ratio 31.476% to potentially raise dividends. The broker recommended investors focus on landlords, as those with higher exposure to premium shopping malls and better dividend visibility are assumed to benefit more from the current cycle.
Among them, HYSAN DEV (00014.HK) -0.080 (-0.449%) Short selling $814.19K; Ratio 5.290% was expected to post improving earnings prospects due to better tenant sales performance at its premium malls and faster-than-expected progress in its capital recycling plan. The broker also said SWIREPROPERTIES (01972.HK) +0.020 (+0.090%) Short selling $8.49M; Ratio 19.941% 's transformation into an integrated commercial landlord and its earnings recovery may drive a valuation re-rating. Meanwhile, stronger resilience in DPU and the resumption of the share buyback plan are predicted to support LINK REIT (00823.HK) +0.380 (+0.969%) Short selling $70.40M; Ratio 31.476% 's valuation.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-20 16:25.)