JPMorgan: Raises this year's Hong Kong property price increase forecast to 10% to 15%. Sun Hung Kai Properties(00016) upgraded to "Overweight" rating

Jingdong Finance APP learned that JPMorgan released a research report stating that the forecast for Hong Kong property price increases this year has been raised from 5% to 7% to 10% to 15%, with an expected increase of about 5% next year. The bank believes the industry has entered a new phase, moving from “initial recovery” to “expansion.”

In an optimistic market environment, the bank believes that valuation standards are shifting from “dividend yield” to “asset net value discount.” Therefore, it has upgraded the rating of Sun Hung Kai Properties (00016) to “Overweight,” with a maximum target price of HKD 162, referencing the expansion phase’s historical average valuation level, which corresponds to a 20% asset net value discount.

At the same time, the bank is also optimistic about Sino Land (00083) and Henderson Land (00012), with the former particularly suitable for income-seeking investors, while the latter awaits earnings release and clearer dividend policies; mid-March will be a better time to enter the market. The bank has also raised the overall target prices of the industry stocks it covers by 13% to 49%.