Dahua Jixian: Maintains "synchronize with the overall market" view on the Chinese and Hong Kong real estate sector, upgrades KERRY PPT (00683) to "buy" rating.

Dahua Ji Xian released a research report stating that it maintains a "synchronized with the market" rating on the real estate sector in Mainland China and Hong Kong. The main stock picks are China Res Land (01109) and SHK PPT (00016), both rated as "buy" with target prices of HK$34.1 and HK$106.9 respectively. The bank has upgraded its rating on KERRY PPT to "buy", with a target price maintained at HK$22.8. It believes that although the construction cost of the Golden Land Court project is high, it can still achieve decent profits after the completion of the residential section in 2027, which will help boost the company's core net profit. The recent drop in stock price may provide attractive entry opportunities for investors. The first batch of units of the second phase of the Golden Land Court residential project in Shanghai by KERRY PPT (00683) was quickly sold out on the day of its release, with a subscription rate of 190% and an average selling price of RMB 20,500 per square meter, an increase of RMB 1,600 from the sales in March. Data show that the buyers are mainly self-occupiers aged 35 to 55 from high-income industries. Dahua Ji Xian believes that this reflects a stable demand for residential properties in Mainland China, but investment sentiment remains weak, as the market data for October also shows a year-on-year decrease in transactions of new and existing homes nationwide, indicating a weakening demand in major cities.