SMM: September 16, HSBC Global Research released a report that most Hong Kong real estate companies' core profits in the first half of the year decreased by an average of 13.4% year-on-year, mainly due to the weak impact of the epidemic in the retail and hotel industries. Among them, the bank was most disappointed by Changshi Group, which cut its dividend by 35%. HSBC expects that the decline in core profits of some companies will narrow in the second half of the year, and profits will recover in Kerry Construction, Wharf and Hang Lung Properties.
The report also pointed out that developers are expected to demonstrate tough business and regain the pace of sales in the second half of the year, but rent collection stocks will still face lease pressure, and rent renewal rents are expected to be reduced in offices and shopping malls at Dacheng. As a result, the visibility of developers' profits will be higher than that of rent-collecting stocks.
In addition, we will continue to support the development of the property market in a sustained low-interest environment. HSBC also pointed out that there are still constructive views on the industry, which will recover after the economic recession and the epidemic, preferring developer stocks over shopping mall office rental stocks, as it is expected that the housing market will recover quickly. choose to prefer SHKP, New World Development, Trust Home, Hang Lung Real Estate and Leader in Rent Collection stocks.
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