SHK PPT (00016) rose nearly 6%. As of the time of writing, the stock was up 5.76%, trading at HK$121.1, with a turnover of HK$607 million. DBS released a research report stating that SHK PPT is Hong Kong's largest property developer, possessing a substantial land bank and a robust investment property portfolio, which constitute its core strengths. Its developable land bank of approximately 19.7 million square feet includes a significant portion of agricultural land, which is expected to benefit from the accelerated development of the Northern Metropolis. The report noted that last year, the company acquired six residential sites through various methods including government tenders and land use conversions. These are projected to collectively provide over 3 million square feet of attributable gross floor area. With favorable land costs, the pre-tax profit margin for these related projects is estimated to exceed 30%, which will support the company's earnings recovery. Citi expressed that investors anticipate Hong Kong property prices will enter an upward cycle this year. If the government accelerates land sales, it could potentially lead to supply issues. The bank indicated that compared to other regions in Asia-Pacific, the valuation of Hong Kong property stocks (whether measured by NAV discount or price-to-book ratio) remains attractive. However, companies are beginning to need to demonstrate uniqueness and deliver actual performance to support further re-rating of their share prices.
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