[I-bank focus]HK property market recovery to continue - MacQ

    Macquarie Research believes the HK residential market is in the recovery stage, and its magnitude is larger and faster than the research house's original anticipation.
  Macquarie believes this is largely attributable to three mortgage rate cuts offsetting the concerns of US interest rate hikes, and the return of both mass market endusers and long-term investors.
  It believe the recovery to continue and thus revised up its 2016-17 property price projections to 0% and 0% (previous: -6%/ -5%).
  Macquarie increased its NAV estimates for several HK developers under its coverage
by 0.3-4.1%. It also increased its 2017-18 earnings estimates by 2.7% and 4.9% on average.
  It believes there is more upside possible on further re-rating of HK developers despite YTD performance of +23%, versus +9% for HK landlords, and +8% for the Hang Seng Index.
  Macquarie sees good investment opportunities in HK developers as the HK residential
market recovers. Its revised target prices for HK developers are as follows:
  Name                             Rating      Target Price
  ----------------------------------------------------------------------
  Sun Hung Kai Properties (00016)  Outperform  HK$135.28 from HK$132.00
  Sino Land (00083)                Neutra      HK$12.16 from HK$11.49 
  New World Development (00017)    Outperform  HK$11.51 from HK$9.05 
  Kerry Properties(00683)          Neutra      HK$21.54 from HK$20.91 
  K Wah International (00173)      Outperform  HK$4.97 from HK$4.81
  Henderson Land (00012)           Neutra      HK$43.86 from HK$43.06 
  Wheelock and Co. (00020)         Neutra      HK$43.46 from HK$42.94 
  CK Property (01113)              Outperform  HK$68.07 from HK$67.00