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<Research>HSBC Research: HK Property Sector Fundamentals Gradually Improving; SHK PPT's Sai Sha Residential Project Sales Boost Investor Confidence
The share prices of Hong Kong's property companies and conglomerates demonstrated their defensive qualities and outpaced the broader market amid the market turbulence in April,...
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<Research>HSBC Research: HK Property Sector Fundamentals Gradually Improving; SHK PPT's Sai Sha Residential Project Sales Boost Investor Confidence
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The share prices of Hong Kong's property companies and conglomerates demonstrated their defensive qualities and outpaced the broader market amid the market turbulence in April, according to a report from HSBC Global Research.

In HSBC Global Research's opinion, industry fundamentals are gradually improving, and the sector faces relatively low direct risk from the wave of US tariffs. Meanwhile, increased capital inflows into the city typically have a positive impact on the local property market, which should provide a certain level of support.

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Nevertheless, the broker preferred companies with recovering earnings growth and enhanced shareholder return initiatives given that the biggest headwind was related to the risk of economic recession.

The report also mentioned that the recent satisfactory sales performance of SHK PPT (00016.HK)  -0.150 (-0.196%)    Short selling $124.53M; Ratio 27.262%   's Sai Sha residential project "SIERRA SEA" should provide confidence to some investors. To the broker, SHK PPT is one of the few companies with good earnings visibility and dividend certainty.

As for KERRY PPT (00683.HK)  +0.060 (+0.314%)    Short selling $15.37M; Ratio 16.924%   , its earnings recovery may be underpinned by the sales performance of high-end residential projects in Hong Kong and Shanghai.

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The broker also predicted Hongkong Land and SWIREPROPERTIES (01972.HK)  +0.120 (+0.724%)    Short selling $6.31M; Ratio 5.157%   to benefit from their commitment to progressive dividend growth, buyback support, and improved earnings growth visibility, which should attract investors.

HSBC Global Reseach's detailed investment ratings and target prices for Hong Kong developers are available in a separate table.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-07 16:25.)

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