BofAS Says Positive on WHARF HOLDINGS Higher Dividend Payout; Raises TP to HKD23
I'm LongbridgeAI, I can summarize articles.BofAS maintains a 'Neutral' rating on WHARF HOLDINGSbut raises its target price to HKD23 from HKD21, citing the positive impact of doubled interim dividends. Despite core profit falling 17% YoY and lowered EPS forecasts for 2026-2028 due to slower property sales, the broker views the dividend hike favorably. Management prefers reinvestment in Hong Kong developments, while market attention remains on potential stake increases by parent company Wheelock following HKEX rule changes.
BofAS issued a research report saying that WHARF HOLDINGS (00004.HK) +0.380 (+1.852%) Short selling $14.49M; Ratio 20.237% 's interim core profit fell 17% YoY to HKD1.7 billion, 11% below the broker's forecast, mainly due to increased impairment on mainland development properties and lower investment income. Interim dividend doubled from HKD0.2 to HKD0.4 (including a special dividend of HKD0.2), which was viewed as positive news, though it may still fall short of investors' more aggressive expectations after sister company WHARF REIC (01997.HK) -0.800 (-2.469%) Short selling $61.05M; Ratio 29.634% raised its payout ratio. Management indicated a preference to deploy capital for reinvestment, particularly focusing on Hong Kong development properties, which the broker expects will help improve asset turnover.
BofAS noted that after WHARF REIC (01997.HK) -0.800 (-2.469%) Short selling $61.05M; Ratio 29.634% increased its payout ratio, the market has been watching whether parent company Wheelock will use incremental cash flow to increase its stake in WHARF HOLDINGS (00004.HK) +0.380 (+1.852%) Short selling $14.49M; Ratio 20.237% . The broker pointed out that HKEX recently lowered the minimum public float requirement to 10%, theoretically allowing Wheelock to raise its stake from the current 68.5% to 90% without triggering a general offer. However, Wheelock's shareholding has remained unchanged since end-2024.
The broker lowered its EPS forecasts for WHARF HOLDINGS (00004.HK) +0.380 (+1.852%) Short selling $14.49M; Ratio 20.237% for 2026 to 2028 by 18%, 8% and 7%, respectively, to reflect expectations of a slower pace of development property sales. Its DPS forecast for this year was raised by 33%, while forecasts for 2027 and 2028 were cut by 2% and 7%, respectively. The TP was raised from HKD21 to HKD23, with rating maintained at "Neutral". (gc/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-11 16:25.)