China Securities Co., Ltd.: The performance of Hong Kong real estate companies has seen the dawn, and leading companies are about to take off.

China Securities Co., Ltd. Securities issued a research report, stating that the overall performance of 15 Hong Kong property companies by 2025 is stable. Two types of companies have improved profitability and stable dividends, one being the top property companies in Hong Kong and the other being property companies with strong operating and asset management capabilities. Settlement profits of Hong Kong properties in 2025 are under pressure due to the market downturn in the previous period, but with the market picking up, sales are steadily increasing. Since the end of May 2025, the momentum of rising prices in the Hong Kong property market has gradually strengthened, and top property companies with abundant land reserves have benefited significantly from project sales. The recovery in sales will continue to drive performance, and the trend of improving operations and performance is clear. Investment property operating profits account for 84.5% of the overall core net profit of Hong Kong properties in 2025, laying a solid foundation for performance stability. The outlook is positive for the continuous improvement of the operations and performance of top companies in the Hong Kong real estate market. The main points of China Securities Co., Ltd. are as follows: The dawn of property performance in Hong Kong has appeared, with two types of companies showing an improvement in profitability and dividend distribution rate. Overall, the performance of 15 Hong Kong property companies in 2025 was stable, with a total revenue of HK$318.2 billion, a year-on-year increase of 1.7%, and a total core net profit attributable to shareholders of HK$86.9 billion, a year-on-year decrease of 1.4%. In terms of structure, the performance of various Hong Kong property companies varies, with two types of companies showing an improvement in profitability and stable dividends, one being the top property companies in Hong Kong and the other being property companies with strong operating and asset management capabilities. Steady increase in sales, abundant land reserves, and clear signs of improvement in leading operations. Settlement profits of Hong Kong properties in 2025 are under pressure due to the market downturn in the previous period, with a total settlement income of HK$126.1 billion for 13 Hong Kong properties in 2025, a year-on-year increase of 14.6%; and a total settlement operating profit of HK$21.3 billion, a year-on-year decrease of 19.8%. Property sales in Hong Kong have steadily increased in 2025, with seven property companies disclosing contract sales totaling HK$85.5 billion in Hong Kong in 2025, a year-on-year increase of 24.4%. Since the end of May 2025, the momentum of rising prices in the Hong Kong property market has gradually strengthened, and top property companies with abundant land reserves have benefited significantly from project sales. The recovery in sales will continue to drive performance, and the trend of improving operations and performance is clear. Investment properties lay a solid foundation for performance stability. Total revenue from investment properties for 15 Hong Kong properties in 2025 was HK$103.1 billion, a year-on-year decrease of 2.2%; and total operating profit was HK$73.4 billion, a year-on-year decrease of 4.1%, with investment property operating profits accounting for 84.5% of the overall core net profit attributable to shareholders. In terms of operations, Hong Kong property companies generally engage in exchange transactions for investment properties, and in 2025, the rental efficiency of investment properties has declined, with retail property rental rates remaining at a high level and office rental rates undergoing some recovery.