UBS: Maintains "Buy" rating on SHK PPT (00016) with a target price of 90 Hong Kong dollars.

UBS released a research report stating that it maintains a "buy" rating on SHK PPT (00016) with a target price of HK$90. The company's mid-term dividend per share is HK$0.95, which is flat compared to the same period last year and in line with UBS' expectations. As of the end of December last year, SHK PPT's core profit for the first half of the 2025 fiscal year increased by 17% year-on-year to HK$10.5 billion, exceeding the bank's expectations by around 11%. This was mainly driven by increased profit contribution from property development projects in Hong Kong, the sale of non-core assets (including agricultural land and units in Mid-Levels Peak) during the period, and a 15% decrease in net financial costs. The company has made provisions of HK$1.1 billion for the Tean Jewel project. Management stated that they will achieve cash flow management through timely sales of new projects, strict control of construction capital expenditure, cautious land acquisitions, and debt reduction. UBS believes that cash flow management will remain a top priority for the company in the future. The bank also mentioned that management expects the sentiment in the first-hand property market to remain strong in the next two quarters, with retail rental in Hong Kong expected to remain stable or show a slight increase.