Morgan Stanley: Expects SHK PPT (00016) to increase basic earnings per share by 13% in the first half of the fiscal year. Target price is 120 Hong Kong dollars.

Morgan Stanley released a research report stating that SHK PPT (00016) will announce its interim performance for the first half of the 2026 fiscal year ending December at the end of February. It is expected that Henderson Land's basic earnings per share for the first half of the fiscal year will increase by 13% year-on-year to HK$3.89, and the interim dividend is expected to remain unchanged at HK$0.95 per share. The company has a "hold" rating on Henderson Land with a target price of HK$120. Due to the low-cost completion of inventory and recent price increases in new projects, the profit margin of property development projects may reach double-digit levels. The report indicates that the Sierra Sea Phase 2A & 2B project is performing well, and Henderson Land is expected to launch the luxury residential project "Tiansi - Sea Phase 2" located in the Kai Tak runway area. With an average selling price of over HK$50,000 per square foot in the first phase, it is expected that the initial price in the second phase could be over HK$45,000 per square foot, potentially bringing a significant profit margin of over 15%.