UBS: Valuations of Hong Kong Homebuilders Rising; Stock Picks Favor Low Debt, High Dividend, and Buyback Strategies
Market Overview: The Hong Kong real estate sector began 2026 positively, with several stocks nearing historical highs, prompting UBS to adopt a selective investment strategy due to rising valuations.
Preferred Stocks: UBS favored stocks with low net gearing ratios, including SINO LAND, CK ASSET, and KERRY PPT, citing lower risks of equity-related issuance amid slow industry deleveraging.
Dividend Focus: The broker also highlighted stocks with sustainable high dividends, such as SWIREPROPERTIES, SINO LAND, and KERRY PPT, while identifying potential valuation re-rating opportunities for stocks with low PB ratios.
Target Price Adjustments: UBS raised target prices for several stocks, including SINO LAND and CK ASSET, while maintaining a cautious stance on HENDERSON LAND, HYSAN DEV, and MTR CORPORATION.
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UBS: Valuations of Hong Kong Homebuilders Rising; Stock Picks Favor Low Debt, High Dividend, and Buyback Strategies
Market Overview: The Hong Kong real estate sector began 2026 positively, with several stocks nearing historical highs, prompting UBS to adopt a selective investment strategy due to rising valuations.
Preferred Stocks: UBS favored stocks with low net gearing ratios, including SINO LAND, CK ASSET, and KERRY PPT, citing lower risks of equity-related issuance amid slow industry deleveraging.
Dividend Focus: The broker also highlighted stocks with sustainable high dividends, such as SWIREPROPERTIES, SINO LAND, and KERRY PPT, while identifying potential valuation re-rating opportunities for stocks with low PB ratios.
Target Price Adjustments: UBS raised target prices for several stocks, including SINO LAND and CK ASSET, while maintaining a cautious stance on HENDERSON LAND, HYSAN DEV, and MTR CORPORATION.
HENDERSON LAND Anticipates Full Completion of Central Flagship Project in 5 Years, with Green Energy Business as Future Cornerstone
Project Overview: Henderson Land's flagship project, Central Yards, has pre-leased over 20,700 square meters, representing about 70% of its total office space, with rental agreements signed at high-end market prices.
Future Projections: The project is expected to be fully completed within the next five years, with a positive outlook on home prices and rents, as predicted by M Stanley.
Green Energy Focus: Chairman Lee Ka Kit anticipates that revenue from the green energy sector could match that of real estate within the next decade, indicating a strategic shift in business focus.
Investment in Startups: Through Full Vision Capital, Lee Ka Kit has invested in 10 global green tech startups, which have a combined valuation of USD6.5 billion and cumulative financing of USD2.5 billion as of last year.
Forbes Reveals 2026 List of Hong Kong's 50 Wealthiest Individuals; Li Ka-shing Maintains First Place with HKD351.7 Billion
Li Ka-shing's Wealth: Li Ka-shing remains Hong Kong's richest person with an estimated wealth of HKD351.78 billion, according to Forbes' 2026 list of the 50 richest individuals in Hong Kong.
Top Rankings: The second position is held by Lee Ka Kit and his family with a net worth of HKD272.22 billion, followed by the Cheng Kar-Shun family in third place with HKD203.58 billion.
Notable Figures: Kwong Siu Hing of SHK PPT ranks fifth with HKD136.5 billion, while other notable figures in the top ten include Peter Woo, Joseph Lau, Joe Tsai, the Lui Yiu Tung family, and Jean Salata.
Market Context: The article also mentions short selling data and stock performance related to these wealthy individuals and their companies, indicating market activity as of February 11, 2026.
Forbes HK Reveals 2026's 50 Wealthiest Individuals; Li Ka-shing Maintains Leading Position with HKD351.7 Billion
Li Ka-shing's Wealth: Li Ka-shing remains Hong Kong's richest person in 2026 with an estimated wealth of HKD351.78 billion, continuing his streak at the top of the Forbes list.
Top Rankings: The second position is held by Lee Ka Kit and family with HKD272.22 billion, followed by the Cheng Kar-Shun family at third with HKD203.58 billion.
Notable Figures: Kwong Siu Hing of SHK PPT moved up to fifth place with HKD136.5 billion, while Peter Woo and Joseph Lau occupy the sixth and seventh spots, respectively.
Additional Rankings: The eighth to tenth positions are held by Joseph Tsai, Lui Yiu Tung family, and Jean Salata, with net worths ranging from approximately HKD74.1 billion to HKD116.2 billion.
<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.
M Stanley Predicts 10% Increase in Home Prices and 5% Rise in Rents This Year, Recommends SHKP, CKA, and Henderson
Market Outlook: Morgan Stanley forecasts a 10% increase in Hong Kong home prices and a 5% rise in rents for the year, while expecting increased stock price volatility ahead of earnings releases.
Preferred Stocks: The broker favors SHK PPT, CK ASSET, and HENDERSON LAND, all rated Overweight, while avoiding WHARF HOLDINGS and NEW WORLD DEV, which are rated Underweight.
Mainland Influence: Joseph Tsang from JLL highlighted that strong purchasing power from mainland buyers is expected to drive a 5% increase in home prices this year, following a market bottom last year.
Market Dynamics: Interest rate cuts and favorable capital market conditions may boost the property market, although geopolitical risks and macro uncertainties could exert downward pressure.
UBS: Valuations of Hong Kong Homebuilders Rising; Stock Picks Favor Low Debt, High Dividend, and Buyback Strategies
Market Overview: The Hong Kong real estate sector began 2026 positively, with several stocks nearing historical highs, prompting UBS to adopt a selective investment strategy due to rising valuations.
Preferred Stocks: UBS favored stocks with low net gearing ratios, including SINO LAND, CK ASSET, and KERRY PPT, citing lower risks of equity-related issuance amid slow industry deleveraging.
Dividend Focus: The broker also highlighted stocks with sustainable high dividends, such as SWIREPROPERTIES, SINO LAND, and KERRY PPT, while identifying potential valuation re-rating opportunities for stocks with low PB ratios.
Target Price Adjustments: UBS raised target prices for several stocks, including SINO LAND and CK ASSET, while maintaining a cautious stance on HENDERSON LAND, HYSAN DEV, and MTR CORPORATION.
HENDERSON LAND Anticipates Full Completion of Central Flagship Project in 5 Years, with Green Energy Business as Future Cornerstone
Project Overview: Henderson Land's flagship project, Central Yards, has pre-leased over 20,700 square meters, representing about 70% of its total office space, with rental agreements signed at high-end market prices.
Future Projections: The project is expected to be fully completed within the next five years, with a positive outlook on home prices and rents, as predicted by M Stanley.
Green Energy Focus: Chairman Lee Ka Kit anticipates that revenue from the green energy sector could match that of real estate within the next decade, indicating a strategic shift in business focus.
Investment in Startups: Through Full Vision Capital, Lee Ka Kit has invested in 10 global green tech startups, which have a combined valuation of USD6.5 billion and cumulative financing of USD2.5 billion as of last year.
Forbes Reveals 2026 List of Hong Kong's 50 Wealthiest Individuals; Li Ka-shing Maintains First Place with HKD351.7 Billion
Li Ka-shing's Wealth: Li Ka-shing remains Hong Kong's richest person with an estimated wealth of HKD351.78 billion, according to Forbes' 2026 list of the 50 richest individuals in Hong Kong.
Top Rankings: The second position is held by Lee Ka Kit and his family with a net worth of HKD272.22 billion, followed by the Cheng Kar-Shun family in third place with HKD203.58 billion.
Notable Figures: Kwong Siu Hing of SHK PPT ranks fifth with HKD136.5 billion, while other notable figures in the top ten include Peter Woo, Joseph Lau, Joe Tsai, the Lui Yiu Tung family, and Jean Salata.
Market Context: The article also mentions short selling data and stock performance related to these wealthy individuals and their companies, indicating market activity as of February 11, 2026.
Forbes HK Reveals 2026's 50 Wealthiest Individuals; Li Ka-shing Maintains Leading Position with HKD351.7 Billion
Li Ka-shing's Wealth: Li Ka-shing remains Hong Kong's richest person in 2026 with an estimated wealth of HKD351.78 billion, continuing his streak at the top of the Forbes list.
Top Rankings: The second position is held by Lee Ka Kit and family with HKD272.22 billion, followed by the Cheng Kar-Shun family at third with HKD203.58 billion.
Notable Figures: Kwong Siu Hing of SHK PPT moved up to fifth place with HKD136.5 billion, while Peter Woo and Joseph Lau occupy the sixth and seventh spots, respectively.
Additional Rankings: The eighth to tenth positions are held by Joseph Tsai, Lui Yiu Tung family, and Jean Salata, with net worths ranging from approximately HKD74.1 billion to HKD116.2 billion.
<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.
M Stanley Predicts 10% Increase in Home Prices and 5% Rise in Rents This Year, Recommends SHKP, CKA, and Henderson
Market Outlook: Morgan Stanley forecasts a 10% increase in Hong Kong home prices and a 5% rise in rents for the year, while expecting increased stock price volatility ahead of earnings releases.
Preferred Stocks: The broker favors SHK PPT, CK ASSET, and HENDERSON LAND, all rated Overweight, while avoiding WHARF HOLDINGS and NEW WORLD DEV, which are rated Underweight.
Mainland Influence: Joseph Tsang from JLL highlighted that strong purchasing power from mainland buyers is expected to drive a 5% increase in home prices this year, following a market bottom last year.
Market Dynamics: Interest rate cuts and favorable capital market conditions may boost the property market, although geopolitical risks and macro uncertainties could exert downward pressure.
