New Land Sales Value Harvest
On Monday, China began its May Day holiday and the stock market was closed. Hong Kong stocks were not affected by A-shares. The HSI rose even further. The HSI rose 527 points to 30,808 points. Although the turnover was only 93.6 billion yuan, it was reputable to be 20,50. With 100 antennas, after the leaders of North Korea and South Korea met, North Korea decided to denuclearize, so that the geopolitical situation greatly reduced, the US debt interest rate back to below 3%, Sino-US trade war depends on the results of the two sides talks this week. In addition, more than 60% of the constituent stocks in the S&P 500 Index have announced quarterly results, most of which are better than expected.
On Monday, there were a number of sectors that did not have any reason to support the recovery. It can be seen that the funds have been waiting. Yesterday, the domestic silver, insurance, brokerage and steel stocks performed better. The HSI only needs to break through a large turnover of 31,500 points. Regain your way up.
For long-term investments, Sun Hung Kai Properties (016) has valued at low levels for a few moments. As of the end of last year, more properties were booked in the first half of the year, and a large harvest of sales led to an increase of 36.7% in profit to 19.793 billion yuan, which was far higher than market expectations. Earnings per share of 6.9 yuan, sending an interim dividend of 1.2 yuan, up 9%.
At the end of last year, the debt ratio was as low as 8%. There are still many project investments in the future and similar ICC and IFC projects will be identified in major cities in the Mainland. The group’s mid-term goal is to sell 40 billion yuan in Hong Kong every year. The rented properties in shopping malls and office buildings will be renewed every year for 10 to 15% of rent increase. Excluding new rents, the total rental income will increase by 5% each year. Existing land reserves are sufficient for the next five to six years, but they will continue to actively increase land reserves and identify opportunities for comprehensive projects in multiple cities in the Mainland and even the Greater Bay Area. SHKP has pre-sold approximately 40% of the residential floor that is expected to be completed in the next financial year. It is estimated that by the end of 2021 to 2023, based on the total gross floor area, about 2.1 million square feet of rental properties will be completed in Hong Kong, including No. 98, How Ming Street, a commercial project.
As far as technological development is concerned, the Group is developing data center and international development through Xinyi.com (1686). SmarTone (315) has deepened its development through different channels, including cooperating with technology companies to develop shopping mall apps. Brokers are generally rated as “buy” and “neutral,” and target prices are generally between 136 and 180 yuan.