HSBC Global Research lowered its target price for Kerry Properties (00683) to HK$32 from HK$34.7 and maintained its "hold" rating.
The research house said Kerry reported a strong set of 1H results. However, HSBC sees the risk of earnings growth momentum to lose steam coupled with several challenges. While the valuation looks attractive, it sees limited near-term catalysts for the company.
HSBC said 2019 annual sales target of HK$12bn looks challenging for Kerry to achieve. Year-to-date it achieved contracted sales of HK$7bn and HSBC estimated its full-year sales of HK$11bn.
HSBC lowered its earnings estimates for FY2019-21 by 2% to 8% on lower margin and sales assumptions of its Hong Kong/China property business.
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