not vested
Why Buy Sun Hung Kai Properties Now? By Shuli Ren
Hong Kong blue-chip developer Sun Hung Kai Properties (16.Hong Kong) has
[b]risen 22% in the last year[/b] despite a difficult property market and the threat of rising U.S. interest rates.
Yet Credit Suisse today upgraded Sun Hung Kai Properties from Neutral to Buy. The bank has a price target of 120.80 Hong Kong dollars, promising another 13% upside.
So what made Credit Suisse change its mind?
A strong execution in a difficult market says something about Sun Hung Kai’s management. In addition, handsome rental income can sustain the developer’s 3.6% dividend yield. Analyst Susanna Leung wrote:
Its FY16 rental income amounted to HK$21 bn, which is even larger than Wharf’s HK$15 bn during the same period. The
rental profit is sufficient to cover its dividend distribution which amounted to circa HK$11 bn in FY16.
Its strong execution in a tough market was also proven, especially with the new launches last year. SHKP has contracted HK$22 bn in HK during 1HFY17, representing 67% of FY17 target.
Retail rental is seen among analysts to be the safest segment of Hong Kong’s property sector. See my January 3 blog “Why Citi Is Bullish On This Hong Kong Landlord“.
Sun Hung Kai rose 1% today.
Source: Barron's Asia
http://blogs.barrons.com/asiastocks/201 ... rties-now/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"