Glonghui, March 13 | Goldman Sachs maintains the “sell and sell” rating of the Wharf Group, with a target price of HK$26. It is expected that its stock price will outperform its peers, mainly due to the belief that its valuation is too high. Based on the current price-earnings ratio of 16 times the current price-earnings ratio, the dividend rate is only 2%. Compared to other peers, this is clearly unattractive, especially the 9 times price-earnings ratio and 5% dividend rate of Hang Lung Properties, which Goldman Sachs rated as a “buy”. Goldman Sachs indicated that last year's results turned into profit and loss, in line with expectations, but its core net profit fell 7% year-on-year to about HK$5.6 billion, mainly due to reduced development property (DP) accounts and weak container terminal business. The total dividend payout for the year was HK$0.4, which is the same level as FY2022, indicating that the company maintains a core net profit dividend policy of about 30%. The company's net debt ratio declined further from 10.1% in the middle of last year to 5.3% at the end of the year. Goldman Sachs mentioned that Jiucang management is cautious about the company's business prospects. Since the land inventory has not been replenished since 2019, Jiucang has a property sales stock for about 3 years at the current sales rate. In the Hong Kong market, Goldman Sachs indicated that although it focuses on the ultra-high-end luxury property market and is relatively resistant to falling, its property sales rate has also declined. Only one Mount Nicholson property was sold last year. Jiucang expects property market transactions to pick up in the next few months after the government withdraws, but does not expect property prices to rise sharply. It is expected that it will not be until later this year until the beginning of next year that property prices will rebound more significantly after mortgage interest rates are lowered.