JPM Increases HK Home Price Growth Prediction for This Year to 10-15% and Upgrades SHKP to Overweight Rating
JPMorgan's Revised Forecast: JPMorgan has increased its forecast for Hong Kong home prices from 5%-7% to 10%-15% for this year, with an additional expected rise of about 5% next year, indicating a shift to an "expansion" phase in the market.
Valuation Changes: The broker noted a transition in valuation metrics from "dividend yield" to "NAV discount" in the current bull market, leading to an upgrade of SHK PPT to Overweight with a target price of HKD162.
Optimism for Other Developers: JPMorgan expressed positive outlooks for SINO LAND and HENDERSON LAND, highlighting SINO LAND as suitable for yield-seeking investors and suggesting a better entry point for HENDERSON LAND around mid-March.
Target Price Adjustments: The broker raised target prices for Hong Kong developers it covers by 13-49%, reflecting overall optimism in the sector.
Trade with 70% Backtested Accuracy
Analyst Views on 00012
About the author
<Full-day Summary> HSI Falls by 491 Points; HSTI Declines by 114 Points; MEITUAN, PING AN Drop Over 4%; TENCENT Decreases Over 3%; WH GROUP, HENDERSON LAND, CKI HOLDINGS, MTR CORPORATION, SINOPHARM Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 491 points (1.8%) to close at 26,590, with significant declines also seen in the HSTI and HSCEI, which dropped 114 points (2.1%) and 189 points (2.1%) respectively, amid a market turnover of $250.99 billion.
Active Heavyweights: Major stocks like Meituan, Ping An, Tencent, Alibaba, and Xiaomi experienced notable declines, with Meituan down 4.2% and Tencent down 3.3%, reflecting a trend of short selling across these companies.
Constituents on the Move: Several constituents saw significant price changes, including Sino Biopharma and Hansoh Pharma, which dropped 6.6% and 6.4% respectively, while WH Group rose by 4.4%, reaching a new high.
Other Notable Stocks: Stocks such as MIRXES-B and CTG Duty-Free faced substantial losses, with MIRXES-B down 21.7%, while KB Laminates and CNBM saw gains of 12.4% and 10.5%, respectively, also hitting new highs.
<Midday Update> HSI Falls 523 Points; HSTI Declines 127 Points; MEITUAN, PING AN Drop Over 4%; TENCENT Decreases Over 3%; WH GROUP, HENDERSON LAND, CKI HOLDINGS, SINOPHARM, KB LAMINATES Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 523 points (1.9%) to 26,558, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 2.4% and 2.1%, respectively.
Active Heavyweights: Major stocks like Meituan, Ping An, Tencent, and Alibaba saw significant drops, with Meituan down 4.8% and Tencent down 3.4%, amidst high short selling ratios.
Notable Declines in Constituents: Several constituents, including Hansoh Pharma and Sino Biopharma, reported steep declines, with Hansoh Pharma down 6.5% and Sino Biopharma down 6.1%.
Gainers Amidst Losses: Despite the overall market downturn, a few stocks like WH Group and Henderson Land recorded gains, with WH Group up 3.2% and Henderson Land up 1.7%, both hitting new highs.
<Full-day Summary> HSI Gains 668 Points; HSTI Rises 173 Points; MEITUAN Increases by Over 5%; BABA and XIAOMI Both Up Over 3%; LI NING, TECHTRONIC IND, SINOPHARM, SHK PPT, and HENDERSON LAND Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 668 points (2.5%) to close at 27,081, with significant gains also seen in the HSTI and HSCEI, which increased by 3.3% and 2.7% respectively, and a market turnover of $172.96 billion.
Top Gainers: Notable heavyweights included Meituan (+5.3%), Alibaba (+3.5%), and Xiaomi (+3.4%), all experiencing substantial increases in their stock prices along with significant short selling activity.
HSI & HSCEI Constituents: Companies like Zijin Mining (+5.3%), SMIC (+5.0%), and BYD Company (+4.7%) showed strong performance, with many stocks hitting new highs and notable short selling ratios.
HSMI & HSSI Highlights: Stocks such as Rept Battero (+15.4%) and Country Garden (+12.1%) saw remarkable increases, indicating a positive trend in smaller market segments.
<Midday Update> HSI Rises by 605 Points; HSTI Gains 173 Points; MEITUAN Surges Over 6%; BABA and TENCENT Both Increase by Over 3%; SHK PPT, TECHTRONIC IND, LI NING, HANG LUNG PPT, and HENDERSON LAND Reach New Peaks
Market Performance: The Hang Seng Index (HSI) rose by 605 points (2.3%) to 27,019, while the Hang Seng Tech Index (HSTI) increased by 173 points (3.3%) to 5,384, and the Hang Seng China Enterprises Index (HSCEI) gained 224 points (2.5%) to 9,183.
Top Gainers: Major stocks like Meituan, Alibaba, and Tencent saw significant increases, with Meituan up 6.9% to $86.35, Alibaba up 3.6% to $152.4, and Tencent up 3.4% to $539.5.
Notable Movers: Other notable stocks included Zijin Mining (+5.3%), SMIC (+4.5%), and JD (+4.2%), all experiencing substantial gains and varying levels of short selling.
Short Selling Activity: The short selling ratios for several stocks were high, with Xiaomi at 47.8%, CCB at 34.9%, and Li Ning at 43.2%, indicating significant market speculation on these companies.
<Study>JPM Ratings and Target Prices for Developers (Table)
SHK PPT Performance: SHK PPT shares increased by 3.76%, with a short selling ratio of 39.4%. Analysts upgraded the stock rating from Neutral to Overweight, raising the target price from HK$109 to HK$162.
CK Asset Update: CK Asset shares rose by 1.03%, with a short selling ratio of 35.8%. The stock remains rated Neutral, with a target price increase from HK$41 to HK$48.5.
Henderson Land Insights: Henderson Land shares saw a 1.90% increase, with a high short selling ratio of 53.3%. The stock is rated Overweight, with a target price adjustment from HK$33 to HK$39.
New World Development and Sino Land: New World Development shares increased by 2.32% and are rated Neutral, with a target price rise from HK$9.5 to HK$10.7. Sino Land shares also rose by 1.33%, rated Overweight, with a target price increase from HK$12.5 to HK$14.5.
JPM Increases HK Home Price Growth Prediction for This Year to 10-15% and Upgrades SHKP to Overweight Rating
JPMorgan's Revised Forecast: JPMorgan has increased its forecast for Hong Kong home prices from 5%-7% to 10%-15% for this year, with an additional expected rise of about 5% next year, indicating a shift to an "expansion" phase in the market.
Valuation Changes: The broker noted a transition in valuation metrics from "dividend yield" to "NAV discount" in the current bull market, leading to an upgrade of SHK PPT to Overweight with a target price of HKD162.
Optimism for Other Developers: JPMorgan expressed positive outlooks for SINO LAND and HENDERSON LAND, highlighting SINO LAND as suitable for yield-seeking investors and suggesting a better entry point for HENDERSON LAND around mid-March.
Target Price Adjustments: The broker raised target prices for Hong Kong developers it covers by 13-49%, reflecting overall optimism in the sector.
<Full-day Summary> HSI Falls by 491 Points; HSTI Declines by 114 Points; MEITUAN, PING AN Drop Over 4%; TENCENT Decreases Over 3%; WH GROUP, HENDERSON LAND, CKI HOLDINGS, MTR CORPORATION, SINOPHARM Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 491 points (1.8%) to close at 26,590, with significant declines also seen in the HSTI and HSCEI, which dropped 114 points (2.1%) and 189 points (2.1%) respectively, amid a market turnover of $250.99 billion.
Active Heavyweights: Major stocks like Meituan, Ping An, Tencent, Alibaba, and Xiaomi experienced notable declines, with Meituan down 4.2% and Tencent down 3.3%, reflecting a trend of short selling across these companies.
Constituents on the Move: Several constituents saw significant price changes, including Sino Biopharma and Hansoh Pharma, which dropped 6.6% and 6.4% respectively, while WH Group rose by 4.4%, reaching a new high.
Other Notable Stocks: Stocks such as MIRXES-B and CTG Duty-Free faced substantial losses, with MIRXES-B down 21.7%, while KB Laminates and CNBM saw gains of 12.4% and 10.5%, respectively, also hitting new highs.
<Midday Update> HSI Falls 523 Points; HSTI Declines 127 Points; MEITUAN, PING AN Drop Over 4%; TENCENT Decreases Over 3%; WH GROUP, HENDERSON LAND, CKI HOLDINGS, SINOPHARM, KB LAMINATES Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 523 points (1.9%) to 26,558, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 2.4% and 2.1%, respectively.
Active Heavyweights: Major stocks like Meituan, Ping An, Tencent, and Alibaba saw significant drops, with Meituan down 4.8% and Tencent down 3.4%, amidst high short selling ratios.
Notable Declines in Constituents: Several constituents, including Hansoh Pharma and Sino Biopharma, reported steep declines, with Hansoh Pharma down 6.5% and Sino Biopharma down 6.1%.
Gainers Amidst Losses: Despite the overall market downturn, a few stocks like WH Group and Henderson Land recorded gains, with WH Group up 3.2% and Henderson Land up 1.7%, both hitting new highs.
<Full-day Summary> HSI Gains 668 Points; HSTI Rises 173 Points; MEITUAN Increases by Over 5%; BABA and XIAOMI Both Up Over 3%; LI NING, TECHTRONIC IND, SINOPHARM, SHK PPT, and HENDERSON LAND Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 668 points (2.5%) to close at 27,081, with significant gains also seen in the HSTI and HSCEI, which increased by 3.3% and 2.7% respectively, and a market turnover of $172.96 billion.
Top Gainers: Notable heavyweights included Meituan (+5.3%), Alibaba (+3.5%), and Xiaomi (+3.4%), all experiencing substantial increases in their stock prices along with significant short selling activity.
HSI & HSCEI Constituents: Companies like Zijin Mining (+5.3%), SMIC (+5.0%), and BYD Company (+4.7%) showed strong performance, with many stocks hitting new highs and notable short selling ratios.
HSMI & HSSI Highlights: Stocks such as Rept Battero (+15.4%) and Country Garden (+12.1%) saw remarkable increases, indicating a positive trend in smaller market segments.
<Midday Update> HSI Rises by 605 Points; HSTI Gains 173 Points; MEITUAN Surges Over 6%; BABA and TENCENT Both Increase by Over 3%; SHK PPT, TECHTRONIC IND, LI NING, HANG LUNG PPT, and HENDERSON LAND Reach New Peaks
Market Performance: The Hang Seng Index (HSI) rose by 605 points (2.3%) to 27,019, while the Hang Seng Tech Index (HSTI) increased by 173 points (3.3%) to 5,384, and the Hang Seng China Enterprises Index (HSCEI) gained 224 points (2.5%) to 9,183.
Top Gainers: Major stocks like Meituan, Alibaba, and Tencent saw significant increases, with Meituan up 6.9% to $86.35, Alibaba up 3.6% to $152.4, and Tencent up 3.4% to $539.5.
Notable Movers: Other notable stocks included Zijin Mining (+5.3%), SMIC (+4.5%), and JD (+4.2%), all experiencing substantial gains and varying levels of short selling.
Short Selling Activity: The short selling ratios for several stocks were high, with Xiaomi at 47.8%, CCB at 34.9%, and Li Ning at 43.2%, indicating significant market speculation on these companies.
<Study>JPM Ratings and Target Prices for Developers (Table)
SHK PPT Performance: SHK PPT shares increased by 3.76%, with a short selling ratio of 39.4%. Analysts upgraded the stock rating from Neutral to Overweight, raising the target price from HK$109 to HK$162.
CK Asset Update: CK Asset shares rose by 1.03%, with a short selling ratio of 35.8%. The stock remains rated Neutral, with a target price increase from HK$41 to HK$48.5.
Henderson Land Insights: Henderson Land shares saw a 1.90% increase, with a high short selling ratio of 53.3%. The stock is rated Overweight, with a target price adjustment from HK$33 to HK$39.
New World Development and Sino Land: New World Development shares increased by 2.32% and are rated Neutral, with a target price rise from HK$9.5 to HK$10.7. Sino Land shares also rose by 1.33%, rated Overweight, with a target price increase from HK$12.5 to HK$14.5.
JPM Increases HK Home Price Growth Prediction for This Year to 10-15% and Upgrades SHKP to Overweight Rating
JPMorgan's Revised Forecast: JPMorgan has increased its forecast for Hong Kong home prices from 5%-7% to 10%-15% for this year, with an additional expected rise of about 5% next year, indicating a shift to an "expansion" phase in the market.
Valuation Changes: The broker noted a transition in valuation metrics from "dividend yield" to "NAV discount" in the current bull market, leading to an upgrade of SHK PPT to Overweight with a target price of HKD162.
Optimism for Other Developers: JPMorgan expressed positive outlooks for SINO LAND and HENDERSON LAND, highlighting SINO LAND as suitable for yield-seeking investors and suggesting a better entry point for HENDERSON LAND around mid-March.
Target Price Adjustments: The broker raised target prices for Hong Kong developers it covers by 13-49%, reflecting overall optimism in the sector.
