[ET Net News Agency, 14 September 2018] HSBC Global Research raised its target price
for Sun Hung Kai Properties (SHKP)(00016) to HK$165.4 from HK$162.4, and maintained its
"buy" rating.
The research house sees a pleasant surprise from the FY2018 results. Its full-year DPS
grew 13% to HK$4.65, which translates into a dividend yield of 4.1% on the latest closing
price. Its DPS growth is one of the highest among the Hong Kong property companies.
Chairman Kwok stressed that SHKP aims for a sustainable dividend and plans to reward
shareholders with higher dividends alongside earnings growth.
SHKP set a contracted sales target of HK$42.5bn for Hong Kong, which is 18% higher than
its target for the previous year and 2% higher than its achieved sales of HK$41bn in
FY2018. For the first 2.5 months of FY2019, SHKP achieved contracted sales of HK$26bn.
HSBC is optimistic that SHKP will exceed its sales target.
HSBC revised its FY2019/20 earnings estimates by +1%/+2% to reflect the updated Hong
Kong/China completion schedules and higher sales assumptions. (KL)