GLONGHUI, September 11 | Bank of America Securities published a report stating that Sun Hung Kai Properties, the largest real estate company in Hong Kong, unexpectedly announced a tightening of its dividend policy and will distribute 40% to 50% of its underlying profit as dividends in the future. The bank said that although the pressure brought about by rising interest rates and weak housing conditions does exist, it is believed that Xindi's decision was due to full prudence rather than tremendous pressure. It is expected that SHKP's net debt ratio is 18.2%, the net debt to EBITDA ratio is 3.5 times, and cash to short-term debt is 2 times. The bank expects SHKP's profit to increase 7% in the 2024 fiscal year and has good visibility. 77% of revenue from Hong Kong development properties has been locked in. The bank believes that SHKP's move does not necessarily mean that other Hong Kong real estate companies will follow SHKP's actions and is expected to put pressure on other local real estate stocks, even though the industry's valuation is low (63% discount from net asset value, average dividend yield of 6.7%). The bank directed the dividend distributions of Sino, Sino Real Estate and Swire Properties to be defensive.