＜Research＞JPM Broadly Cuts TPs on HK Property Stocks, Prefers SINO LAND & LINK While Cautious on NWD & WHARF REIC

　　JPMorgan noted in a report that Hong Kong property stocks will gradually announce their interim or full-year results in the next few months, and the sector's core EPS is expected to fall by an average of 7%, mainly due to lower rental income, pressure on gross margins from development property projects and higher financing costs. Dividend for most property stocks should be flat or slightly higher, but 3 of the 12 stocks are expected to cut their dividends, with WHARF REIC (01997.HK) -0.280 (-1.455%) Short selling $9.47M; Ratio 31.808% and HANG LUNG PPT (00101.HK) -0.040 (-0.626%) Short selling $4.64M; Ratio 14.809% posing higher downside risks according to the broker's current forecasts.

　　For the sector as a whole, the broker remained cautious and would be selective for individual stocks. More potential non-performing asset disposals could also drive capitalisation rate expansion, leading to further asset depreciation. Even if interest rate cuts materialise, the bank does not expect sustained outperformance.

　　Related NewsHANG LUNG PPT Interim Underlying NP $1.735B, Down 22% YoY; Interim Div. $12 Cents

　　The broker preferred SINO LAND (00083.HK) +0.050 (+0.625%) Short selling $1.06M; Ratio 20.349% and LINK REIT (00823.HK) +0.250 (+0.756%) Short selling $30.09M; Ratio 28.394% , and is cautious on NEW WORLD DEV (00017.HK) -0.050 (-0.684%) Short selling $5.35M; Ratio 35.415% and WHARF.

　　JPM lowered its target price on HANG LUNG PPT (00101.HK) -0.040 (-0.626%) Short selling $4.64M; Ratio 14.809% from $8 to $6.3 and maintained its Neutral rating. The broker's target price on NWD was trimmed from $7.5 to $6.5 with its Underweight rating maintained. The target price on SHK PPT (00016.HK) -0.600 (-0.858%) Short selling $21.95M; Ratio 30.820% was dropped from $72 to $68 with its Neutral rating kept. The target price on SWIREPROPERTIES (01972.HK) -0.340 (-2.673%) Short selling $3.76M; Ratio 28.187% was cut from $18 to $15, and its Overweight rating was maintained. Finally, the broker reduced its target price on WHARF from $22 to $17 and kept its Underweight rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-30 12:25.)

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