[ET Net News Agency, 21 August 2018] CLSA said Hong Kong's property market is having
its worst combination of fundamentals in 15 years with rising interest rates (2005-06), a
slowing economy (2008) and a depreciating Rmb (2015-16).
The research house said that sentiment could deteriorate at any time as prices are
unaffordable. It expects a 15% correction over the next 12 months and downgraded Hong Kong
developers to "underweight".
CLSA revised its target prices and ratings for the developers it covers as follows:
Name Rating Target Price
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SHKP (00016) Sell from Outperform HK$105.0 from HK$150
CK Asset (01113) Buy HK$78.0
Henderson Land (00012) Underperform from Buy HK$40.0 from HK$54.55
Sino Land (00083) Underperform from Outperform HK$13.0 from HK$15.45
Kerry Prop (00683) Sell HK$40.0
New World Dev (00017) Outperform from Buy HK$11.5 from HK$15
Wharf (00014) Sell HK$23.0
Hang Lung Prop (00101) Outperform HK$18.0
Hysan Dev (00004) Underperform HK$43.2
Great Eagle (00041) Underperform HK$42.5
Wharf REIC (01997) Outperform HK$60.0
Swire Prop (01972) Outperform HK$33.5
Link REIT (00823) Underperform HK$75.0

(KL)