HANG LUNG PPT Reports 3.5% Increase in Full-Year Underlying Net Profit to $3.202B; Final Dividend Maintained at 40 Cents
Stock Performance: HANG LUNG PPT (00101.HK) experienced a decline of 2.567%, with a short selling amount of $10.37 million and a ratio of 11.431%.
Annual Results Announcement: The company reported its annual results for the year ending December 2025, showing an underlying net profit of $3.202 billion, which is a 3.5% increase year-over-year.
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<Daily Summary> HSI Falls 292 Points; HSTI Declines 156 Points; BABA Drops More Than 4%; XIAOMI Decreases Over 3%; HENDERSON LAND, MIDEA GROUP, CNOOC, HANG LUNG PPT, SHK PPT Reach New Peaks; Market Activity Increases
Market Performance: The Hang Seng Index (HSI) fell by 292 points (1.1%) to close at 26,413, while the Hang Seng Tech Index (HSTI) dropped 156 points (2.9%) to 5,211, with a total market turnover of $165.37 billion.
Declining Heavyweights: Major stocks like Alibaba, Xiaomi, Tencent, and Meituan experienced significant declines, with Alibaba down 4.9% and Xiaomi down 3.5%, reflecting a broader trend of short selling in the market.
Notable Movers: JD Health and Baidu saw substantial drops of 6.3%, while Beigene and PetroChina gained 4.2% and 3.7%, respectively, indicating mixed performance among HSI and HSCEI constituents.
High Performers in Smaller Stocks: Stocks like DOBOT and GUOFUHEE surged by over 17%, showcasing strong gains in smaller companies despite the overall market downturn.
<Study>G Sachs Ratings and Target Prices for Hong Kong Homebuilders (Table)
Homebuilders Performance: Henderson Land and Sino Land showed positive stock movements, while New World Development experienced a slight decline; ratings varied from "Sell" to "Neutral" and "Buy."
Landlords Overview: Wharf Holdings and Wharf REIC faced declines, while Hang Lung Properties and Swire Properties saw gains; ratings ranged from "Sell" to "Buy."
Conglomerates Update: Swire Pacific A had a positive performance, while MTR Corporation and CKI Holdings experienced declines; ratings included "Neutral" and "Sell."
Short Selling Insights: Significant short selling activity was noted across various companies, with ratios indicating varying levels of investor sentiment and market confidence.
Midday Update: HSI Ends at 26,544, Down 161 Points; HSTI at 5,245, Down 122 Points; BABA Falls Over 3%; HENDERSON LAND, CNOOC, HANG LUNG PPT, MIDEA GROUP, and SHK PPT Reach New Highs
Market Performance: The HSI fell by 161 points (0.6%) to 26,544, while the HSTI and HSCEI also experienced declines of 2.3% and 0.6%, respectively.
Active Heavyweights: Major stocks like BABA, XIAOMI, and TENCENT saw significant drops, with BABA down 3.7% and XIAOMI down 2.3%, amidst high short selling ratios.
Notable Movers: Beigene and PetroChina were among the gainers, with Beigene rising 4.8% and PetroChina up 4.6%, both hitting new highs.
Short Selling Trends: Several stocks, including JD Health and NTES, faced heavy short selling, indicating bearish sentiment among investors.
Midday Update: HSI Ends at 27,299, Gaining 116 Points; HSTI Reaches 5,510, Up 59 Points; XIAOMI Surges Over 4%; TECHTRONIC IND, ZTO EXPRESS-W, CHINA RES MIXC, WH GROUP, and HANG LUNG PPT Achieve New Highs
Market Performance: The Hang Seng Index (HSI) rose by 116 points (0.4%) to 27,299, while the Hang Seng Tech Index (HSTI) increased by 59 points (1.1%) to 5,510, and the Hang Seng China Enterprises Index (HSCEI) gained 38 points (0.4%) to 9,281.
Active Heavyweights: Notable stock movements included Xiaomi (+4.7%), Alibaba (+0.8%), and Ping An (-1.1%), with significant short selling activity observed across these stocks.
Top Gainers and Losers: Techtronic Industries saw a notable increase of 5.9%, while SMIC experienced a decline of 3.6%. Other significant movers included BYD (+3.9%) and Pop Mart (-3.5%).
New Highs: Several stocks, including ZTO Express and WH Group, reached new highs, indicating strong market interest and performance in certain sectors.
<BofAS Analysis> Ratings and Target Prices for Hong Kong Property Developers and Landlords (Table)
Property Developers Performance: Various property developers showed mixed performance with SHK PPT and Henderson Land rated as neutral, while CK Asset and Sino Land received buy ratings. New World Development was rated underperform.
Landlords Overview: Hysan Development and Swire Properties experienced declines, but all listed landlords, including Wharf REIC and Hang Lung Properties, received buy ratings, indicating positive market sentiment.
REITs Market Status: LINK REIT saw a significant increase in share price and was rated a buy, reflecting optimism in the REIT sector.
Conglomerates Insights: MTR Corporation and CKH Holdings were rated underperform and buy respectively, with short selling activity indicating varying investor confidence in these conglomerates.
BofAS Increases Target Prices for Hong Kong Property Developers by Approximately 10%, Chooses LINK REIT as Underperformer
Investor Sentiment: BofA Securities reports that investors are optimistic about the real estate market's recovery, leading to an average 10% increase in target prices for several real estate stocks due to strong sales in Hong Kong.
Stock Preferences: The broker favors CK ASSET and SINO LAND for their earnings sensitivity to property price growth, while SWIRE PROPERTIES and HANG LUNG PPT are preferred for their higher dividend yields amidst resilient luxury retail in mainland China.
Non-Consensus Pick: LINK REIT is highlighted as a non-consensus laggard due to its widened valuation gap with peers and short-term challenges in e-commerce, despite a high dividend yield.
Market Outlook: BofA Securities has adjusted its FY25-28 EPS forecasts for HYSAN DEV and provided detailed ratings and target prices for Hong Kong property developers and landlords in a separate table.
<Daily Summary> HSI Falls 292 Points; HSTI Declines 156 Points; BABA Drops More Than 4%; XIAOMI Decreases Over 3%; HENDERSON LAND, MIDEA GROUP, CNOOC, HANG LUNG PPT, SHK PPT Reach New Peaks; Market Activity Increases
Market Performance: The Hang Seng Index (HSI) fell by 292 points (1.1%) to close at 26,413, while the Hang Seng Tech Index (HSTI) dropped 156 points (2.9%) to 5,211, with a total market turnover of $165.37 billion.
Declining Heavyweights: Major stocks like Alibaba, Xiaomi, Tencent, and Meituan experienced significant declines, with Alibaba down 4.9% and Xiaomi down 3.5%, reflecting a broader trend of short selling in the market.
Notable Movers: JD Health and Baidu saw substantial drops of 6.3%, while Beigene and PetroChina gained 4.2% and 3.7%, respectively, indicating mixed performance among HSI and HSCEI constituents.
High Performers in Smaller Stocks: Stocks like DOBOT and GUOFUHEE surged by over 17%, showcasing strong gains in smaller companies despite the overall market downturn.
<Study>G Sachs Ratings and Target Prices for Hong Kong Homebuilders (Table)
Homebuilders Performance: Henderson Land and Sino Land showed positive stock movements, while New World Development experienced a slight decline; ratings varied from "Sell" to "Neutral" and "Buy."
Landlords Overview: Wharf Holdings and Wharf REIC faced declines, while Hang Lung Properties and Swire Properties saw gains; ratings ranged from "Sell" to "Buy."
Conglomerates Update: Swire Pacific A had a positive performance, while MTR Corporation and CKI Holdings experienced declines; ratings included "Neutral" and "Sell."
Short Selling Insights: Significant short selling activity was noted across various companies, with ratios indicating varying levels of investor sentiment and market confidence.
Midday Update: HSI Ends at 26,544, Down 161 Points; HSTI at 5,245, Down 122 Points; BABA Falls Over 3%; HENDERSON LAND, CNOOC, HANG LUNG PPT, MIDEA GROUP, and SHK PPT Reach New Highs
Market Performance: The HSI fell by 161 points (0.6%) to 26,544, while the HSTI and HSCEI also experienced declines of 2.3% and 0.6%, respectively.
Active Heavyweights: Major stocks like BABA, XIAOMI, and TENCENT saw significant drops, with BABA down 3.7% and XIAOMI down 2.3%, amidst high short selling ratios.
Notable Movers: Beigene and PetroChina were among the gainers, with Beigene rising 4.8% and PetroChina up 4.6%, both hitting new highs.
Short Selling Trends: Several stocks, including JD Health and NTES, faced heavy short selling, indicating bearish sentiment among investors.
Midday Update: HSI Ends at 27,299, Gaining 116 Points; HSTI Reaches 5,510, Up 59 Points; XIAOMI Surges Over 4%; TECHTRONIC IND, ZTO EXPRESS-W, CHINA RES MIXC, WH GROUP, and HANG LUNG PPT Achieve New Highs
Market Performance: The Hang Seng Index (HSI) rose by 116 points (0.4%) to 27,299, while the Hang Seng Tech Index (HSTI) increased by 59 points (1.1%) to 5,510, and the Hang Seng China Enterprises Index (HSCEI) gained 38 points (0.4%) to 9,281.
Active Heavyweights: Notable stock movements included Xiaomi (+4.7%), Alibaba (+0.8%), and Ping An (-1.1%), with significant short selling activity observed across these stocks.
Top Gainers and Losers: Techtronic Industries saw a notable increase of 5.9%, while SMIC experienced a decline of 3.6%. Other significant movers included BYD (+3.9%) and Pop Mart (-3.5%).
New Highs: Several stocks, including ZTO Express and WH Group, reached new highs, indicating strong market interest and performance in certain sectors.
<BofAS Analysis> Ratings and Target Prices for Hong Kong Property Developers and Landlords (Table)
Property Developers Performance: Various property developers showed mixed performance with SHK PPT and Henderson Land rated as neutral, while CK Asset and Sino Land received buy ratings. New World Development was rated underperform.
Landlords Overview: Hysan Development and Swire Properties experienced declines, but all listed landlords, including Wharf REIC and Hang Lung Properties, received buy ratings, indicating positive market sentiment.
REITs Market Status: LINK REIT saw a significant increase in share price and was rated a buy, reflecting optimism in the REIT sector.
Conglomerates Insights: MTR Corporation and CKH Holdings were rated underperform and buy respectively, with short selling activity indicating varying investor confidence in these conglomerates.
BofAS Increases Target Prices for Hong Kong Property Developers by Approximately 10%, Chooses LINK REIT as Underperformer
Investor Sentiment: BofA Securities reports that investors are optimistic about the real estate market's recovery, leading to an average 10% increase in target prices for several real estate stocks due to strong sales in Hong Kong.
Stock Preferences: The broker favors CK ASSET and SINO LAND for their earnings sensitivity to property price growth, while SWIRE PROPERTIES and HANG LUNG PPT are preferred for their higher dividend yields amidst resilient luxury retail in mainland China.
Non-Consensus Pick: LINK REIT is highlighted as a non-consensus laggard due to its widened valuation gap with peers and short-term challenges in e-commerce, despite a high dividend yield.
Market Outlook: BofA Securities has adjusted its FY25-28 EPS forecasts for HYSAN DEV and provided detailed ratings and target prices for Hong Kong property developers and landlords in a separate table.
