The Zhitong Finance App learned that Dahua Jixian released a research report saying that maintaining the “buy” rating of Sun Hung Kai Properties (00016) is still ranked as the preferred stock in the Hong Kong real estate industry. It is hoped that the growing investment property portfolio of Xindi will drive the company's medium-term growth, but considering more conservative sales forecasts, the profit test for the 2024/25 fiscal year was lowered by 16.8% and 17.5% respectively, and the target price was reduced from HK$128.73 to HK$112.64.

According to the report, due to the fact that the contribution of Hong Kong's real estate development business was lower than expected, the company's basic net profit for FY2023 fell 16.9% year on year, falling short of market expectations. Excluding the impact of foreign exchange, Hong Kong and mainland retail portfolios still showed some resilience. In addition, the sales targets for equity contracts in Hong Kong and the Mainland for the 2024 fiscal year are 33 billion and HK$5 billion respectively. Dahua said it is becoming more cautious about the company's business in the coming year. It is estimated that management will pay attention to the safety of the financial situation, plan to keep the net debt ratio below 20%, and sell non-core assets. In the future, the basic net profit dividend payment ratio will return to a normal level of 40% to 50%, and will also strictly control capital expenditure.