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China Automobile Weekly / Sun Hung Kai Properties
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Sector Update | Automobile
The yoy drop in the China PV wholesale shipment expanded to 5.7% yoy in August from 0.2% yoy in July, but mom sales growth remained positive at 4.7%. The authorities reinforced the 60-day payment term policy. September’s new model launch calendar is busier than that of Chengdu Auto Show. Maintain MARKET WEIGHT. Top BUYs: BYD, Geely, CATL, and Minth. Top SELL: Li Auto.
Company Results | Sun Hung Kai Properties (16 HK/BUY/HK$116.70/Target: HK$143.80)
SHKP’s FY26 underlying profit rose 4.6% yoy to HK$22.85b, broadly in line with consensus. Lower finance costs and Dynasty Court disposal gains offset a 3.6% operating-profit decline. Hong Kong development margin improved to 14.8% in 2HFY26 from 7.6% in 1HFY26. DPS grew 4.3% to HK$3.91 and net gearing fell to 10.7%. Management targets HK$33b Hong Kong contracted sales in FY27. We expect property and leasing market recovery to support FY27 earnings. Maintain BUY; target price: HK$143.80.
Top Stories
Sector Update | Automobile
The yoy drop in the China PV wholesale shipment expanded to 5.7% yoy in August from 0.2% yoy in July, but mom sales growth remained positive at 4.7%. The authorities reinforced the 60-day payment term policy. September’s new model launch calendar is busier than that of Chengdu Auto Show. Maintain MARKET WEIGHT. Top BUYs: BYD, Geely, CATL, and Minth. Top SELL: Li Auto.
Company Results | Sun Hung Kai Properties (16 HK/BUY/HK$116.70/Target: HK$143.80)
SHKP’s FY26 underlying profit rose 4.6% yoy to HK$22.85b, broadly in line with consensus. Lower finance costs and Dynasty Court disposal gains offset a 3.6% operating-profit decline. Hong Kong development margin improved to 14.8% in 2HFY26 from 7.6% in 1HFY26. DPS grew 4.3% to HK$3.91 and net gearing fell to 10.7%. Management targets HK$33b Hong Kong contracted sales in FY27. We expect property and leasing market recovery to support FY27 earnings. Maintain BUY; target price: HK$143.80.
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Key Indices
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