[I-bank focus]Mismatch seen between property prices & shares

   HSBC Global Research said HK developers are expediting new project launches to capture the robust residential property market sentiment.
  Sentiment is primarily driven by multiple record-high land sales in Kai Tak and Nam Cheong over the past seven months. The sales performance of recent new launches was strong and the momentum is likely to persist.
  New World Development (NWD)(00017) launched its high-end project Fleur Pavilia (611 units) in North Point and sold 237 units, or 96% of the launched units, at the project's debut, generating sales of HK$5.8bn.
  K Wah (00173) launched its mass market project Solaria and received a 100% take-up rate for its first batch of 238 units, achieving total sales of HK$2bn. The company is targeting to sell all 1,122 units of the project in June.
  Henderson Land (00012) is planning to launch its Cetus Square Mile (514 units) project soon, while Sun Hung Kai Properties (SHKP)(00016) is preparing to launch its Park YOHO Milano project in Yuen Long (538 units) and its St Martin project in Tai Po (804 units) shortly.
  HK property prices continue the uptrend year-to-date and have risen 10%, compared to a 14% increase in the full-year 2017. Transaction volume is on a similar trend.
  HSBC maintained its positive stance on Hong Kong property companies. It believes there is a mismatch between the fundamentals and the year-to-date share price weakness of property companies, presenting a good investment opportunity.
  It said the sector is trading at an attractive 46% NAV discount.