HSBC: SHK PPT (00016) benefits from continued recovery in the property market, property development profitability rate rises.

OCBC released a research report stating that SHK PPT (00016) will benefit from the continuous recovery of the Hong Kong residential property market. As the largest property developer in Hong Kong, the company has a land bank of approximately 19.1 million square feet, as well as a substantial agricultural land reserve, which will help it benefit from the accelerated development in the northern metropolitan area. Meanwhile, its high-quality investment property portfolio continues to bring in steady recurring income. OCBC has set a target price of HK$146.3 for New World and maintains a "Buy" rating. The bank points out that as Hong Kong residential prices continue to recover, New World's development business profitability is gradually improving. The bank expects that as high-margin projects are successively confirmed, the overall pre-tax development profit margin of its Hong Kong projects will rise from around 8% in the first half of the 2026 fiscal year and approximately 12% for the full year, to over 20% in the 2027 and 2028 fiscal years.