A director at Wharf(Holdings) Ltd sold 200,000 shares at 18.725HKD and the significance rating of the trade was 65/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years cl...
WHARF HOLDINGS (HK), a company active in the Real Estate Holding & Development industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, defensive market behaviour. The title leverages a more favourable environment and raises its general evaluation to Positive. As of the analysis date February 11, 2022, the closing price was HKD 27.95 and its pote...
GREATER CHINA Sector Property: Hong Kong developers may see opportunities in mainland China. INDONESIA Sector Construction: New capital city project kicks off, potential 20-40% yoy increase in new contracts in 2022. MALAYSIA Update TIME dotCom (TDC MK/BUY/RM4.25/Target: RM4.80): Resilient earnings outlook backed by robust fibre broadband demand and prominence of data centre contribution. Maintain BUY on weakness. Small-Mid Cap Highlights Malaysia Smelting Corporation (SMELT MK/BUY/RM3.47/Targe...
Home prices continued to soften amid the resurgence of COVID-19 cases and as Lunar New Year draws closer. Despite weekend property viewing activities slumping to a oneyear low, the secondary market’s transaction volume remained stable. We believe the Hong Kong property market could stay in limbo amid the fifth wave of COVID-19 infections and suggest looking at developers which could benefit from policy easing in mainland China. Maintain MARKET WEIGHT.
Hong Kong has announced a tightening of local social distancing measures effective 7 Jan 22 as it is expecting a fifth COVID-19 wave. Although the housing market showed a strong performance in 2021, we see a lack of catalysts going forward especially with hopes of a border reopening soon dashed. We still prefer retail landlords, and our top pick is Link REIT. For developers, we prefer diversified developer CKA. Maintain MARKET WEIGHT.
Home prices may continue to moderate, although transaction volumes in Nov 21 remained stable. Ytd home transaction volume has hit a nine-year high, while transaction value has hit a historical high. Hong Kong developers may benefit from mainland developers selling out projects at discounts. Nevertheless, we remain cautious on new uncertainties from the new COVID-19 variant of concern. Maintain MARKET WEIGHT.
Home prices are cooling, down 2.7% from the historical high, although still up 5.6% ytd. Similarly, transaction volumes cooled and declined 21% in Oct 21. Nevertheless, market sentiment appears to be positive after the policy address, especially for submarkets in the Northern Metropolis. We turn relatively cautious on
Hong Kong’s CE delivered the 2021 Policy Address yesterday, with a focus on shifting back to solving the housing issues in Hong Kong. The highlight is the new Northern Metropolis development plan, which is expected to provide 516,000-536,000 new housing units. Together with other supply policies, supply could increase significantly about 10 years from now, but demand still outweighs supply in the short-mid run. Maintain MARKET WEIGHT with NWD and SHKP as top picks.
Hong Kong developers’ share prices are under pressure following reports of Chinese officials asking them to use their resources and influence to back Beijing’s interests and solve the housing shortage. This puts the focus back on supply, in line with the property policies in Hong Kong since 2017. The developers’ farmland could be converted under PPP or resumed by the government. The vacancy tax could also be reintroduced in the near-term. Maintain MARKET WEIGHT.
Wharf’s results came in below expectations, recording a net underlying loss of HK$526m. The surprise was mainly due to HK$3.65b impairment provisions for China DP including office and residential projects. Only 38% of its China DP sales target was achieved, and we see persistent headwinds from the tough regulatory environment in the mainland. China IFS malls’ strong performance continues but oversupply of malls and offices may limit IP portfolio upside. Maintain SELL. Target: HK$21.55.
KEY HIGHLIGHTS Sector Internet Potential tax reform for online game companies. Machinery July: Slight miss; bottoming out on expectations on stimulus and easing of pressure on raw material costs. Results Champion REIT (2778 HK/HOLD/HK$4.40/Target: HK$4.43) 1H21: In line with expectations; DPU down 2% yoy. Wharf Holdings (4 HK/SELL/HK$26.30 /Target: HK$21.55) 1H21: Below expectations due to impairments on mainland DP. TRADERS’ CORNER Zhongsheng Group (881 HK): Trading Buy Range: HK$72.15-72....
GREATER CHINA Sector Internet: Potential tax reform for online game companies. Machinery: July: Slight miss; bottoming out on expectations on stimulus and easing of pressure on raw material costs. Results Champion REIT (2778 HK/HOLD/HK$4.40/Target: HK$4.43): 1H21: In line with expectations; DPU down 2% yoy. Wharf Holdings (4 HK/SELL/HK$26.30 /Target: HK$21.55): 1H21: Below expectations due to impairments on mainland DP. MALAYSIA Update Inari Amertron (INRI MK/BUY/RM3.60/Target: RM4.30): Inari ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
CCL index has ended its 5-week rising streak and reported a 0.9% wow decline in the week ending 4 Jul 21. Meanwhile, 1H21 home transaction volumes were up 47%/16% vs 1H20/1H19. Hong Kong-based developers appear on track to achieve their FY21 sales targets thanks to a post-pandemic home sales frenzy with sales in the mainland generally coming in above expectations. Maintain MARKET WEIGHT.
The CCL index, which reflects secondary property prices, was last reported at a 91- week high of 185.16 (+0.4% wow), 2.79% from the historical high. The exodus of Hong Kong residents is unlikely to dent the local property market, as the city’s residential property market is still currently undersupplied. We upgrade our 2021 home price forecast from 5% to 8% and we see 13% upside in valuations compared with the previous upcycle in 2016. Maintain MARKET WEIGHT.
In the week ending 23 May 21, home prices dipped 0.09% wow. Meanwhile, home transaction volumes remained high in May 21 at about 7,000. Ytd, transaction volumes are up 60% yoy and high volumes could be sustained as developers continue to launch new projects in Jun 21. In particular, NWD received an overwhelming response for its Pavilia Farm III units with an oversubscription rate of >70x. Maintain MARKET WEIGHT.
The Hong Kong-Singapore air travel bubble has been delayed for the second time due to the new outbreak of COVID-19 infections in Singapore. Meanwhile, in Hong Kong, primary market property sales continue their strong momentum with 337 units transacted over the weekend. Home prices are up 4.2% ytd as the low interest rate environment, ample market liquidity and strong economic performance in 1Q21 contributed to the robust property sales. Maintain MARKET WEIGHT.
A 22-month high of 7,444 home transactions was recorded in Mar 21, mainly driven by an active secondary market. Meanwhile, home prices in Hong Kong have rebounded, posting a 2.3% gain ytd. We expect the momentum to be sustained in 2Q21 on low mortgage rates and other positive indicators. Developers could also launch >9,000 new units in the second quarter. Our top pick is SHKP on its ample project pipeline and it being a proxy to the overall Hong Kong property market. Maintain MARKET WEIGHT.
Wharf’s 2020 results came in below expectations due to the recognition of a HK$2,864m impairment provision. Stripping out the accounting adjustment, earnings beat our forecast due to a higher booking for Mainland DP. The Mainland IP segment upturned 1Q20’s poor performance in 2H20 and management expects positive rental reversion in 2021. Mainland DP’s contribution may decline due to depletion of its landbank. Maintain HOLD. Target: HK$20.65. Entry price is HK$18.60.
KEY HIGHLIGHTS Sector Machinery Feb 21: Expect historical high sales in March. Upgrade to MARKET WEIGHT. Results Wharf Holdings (4 HK/HOLD/HK$18.96/Target: HK$20.65) 2020: Below expectations. TRADERS’ CORNER Hysan Development (14 HK): Trading Buy Range: HK$33.95-34.00 Link REIT (823 HK): Trading Buy Range: HK$73.15-73.20
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