＜Research＞M Stanley Prefers SINO LAND & HLD Among HK Property Stocks, Citing High Div. Yield

　　Morgan Stanley commented in a report that Hong Kong's property sector is facing headwinds, with most developers expected to post weak 1H24 earnings this year due to falling property development margins, lower rental income and higher interest expenses. The broker preferred companies with high and stable dividend yields, including SINO LAND (00083.HK) +0.120 (+1.491%) Short selling $2.60M; Ratio 41.466% and HENDERSON LAND (00012.HK) +0.050 (+0.239%) Short selling $1.36M; Ratio 19.215% .

　　In the sub-sector, the broker remained optimistic about residential property development, followed by retail and finally office. The broker forecasted HLD to maintain its dividend per share and record $10 billion in contracted sales during 1H24.

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　　Morgan estimated that the profit margin of Hong Kong developers' property development business will fall from 30% in 1H23 to 23% in 1H24, while some companies may make impairment charges for high land price projects. In addition, the developer's Hong Kong rental business may see a slight YoY decline in EBIT in 1H24.

　　Due to the downward earnings outlook, the broker predicted SHK PPT (00016.HK) -0.500 (-0.740%) Short selling $16.19M; Ratio 13.260% to log a YoY drop of 23% in DPS and 8% in EPS for FY24, while CK ASSET (01113.HK) +0.300 (+1.026%) Short selling $10.76M; Ratio 20.967% is forecasted to record a YoY drop of 10% in DPS and 19% in EPS for 1H24.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-06-28 12:25.)

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