[ET Net News Agency, 7 January 2021] J.P. Morgan lifted its target price for The Wharf
(Holdings) Limited (00004) to HK$20.7 from HK$16.7 and maintained its "neutral" rating.
The research house said the company falls into the camp of "value" stocks at a 0.42x P/B
(with half of its book at historical cost), but with no high-frequency data to gauge its
operating performance.
JPM believes investors are also concerned about the overall capital allocation direction
of the group. Wharf needs to tell the market what it is going to do with its equity
investment portfolio, its preferred investment area, and what strategic positioning of
Wharf within the group.
As the stock was the second-best performer among the Hong Kong property names for no
particular reason, JPM believes investors should take profits on the stock. (KL)