DBS: SHK PPT to Benefit from Sustained Property Market Recovery, Property Development Margins Recover
I'm LongbridgeAI, I can summarize articles.DBS maintains a Buy rating on SHK PPTwith a target price of HKD146.3, citing benefits from Hong Kong's sustained residential property recovery. The broker forecasts pre-tax development margins to rebound above 20% in FY2027-2028 due to high-margin project recognition and favorable land acquisitions since 2023. SHK PPT is well-positioned via its large land bank and Northern Metropolis exposure, while its investment portfolio provides stable recurring income.
DBS said in a report that SHK PPT (00016.HK) -0.300 (-0.243%) Short selling $137.45M; Ratio 35.781% will benefit from the sustained recovery of Hong Kong's residential property market. As Hong Kong's largest property developer, the company has a development land bank of approximately 19.1 million square feet, along with a sizeable agricultural land reserve, positioning it to benefit from the accelerated development of the Northern Metropolis. Meanwhile, its high-quality investment property portfolio continues to generate stable recurring income.
The broker noted that as Hong Kong residential property prices continue to recover, the profitability of SHK PPT's development business is gradually improving. It forecast that, as high-margin projects are progressively recognized, the overall pre-tax development margin of its Hong Kong projects will rebound from 8% in 1H26 and around 12% for FY2026 to above 20% in FY2027 and FY2028. In addition, since 2023, the company has acquired 11 residential development sites at relatively favorable land costs, laying a solid foundation for further margin expansion in the medium term.
DBS set a TP of HKD146.3 on SHK PPT and maintained its Buy rating. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-21 16:25.)