Glonghui, July 30 | According to a J.P. Morgan Chase research report, Hong Kong real estate stocks will gradually announce mid-term or annual results in the next few months. It is expected that the industry's core earnings per share will drop by an average of 7%, mainly due to lower rental revenue, pressure on gross profit from development projects, and rising financing costs. The dividends per share for most real estate stocks should remain flat or rise slightly, but it is expected that 3 out of 12 real estate stocks will only reduce dividends, while Wharf Land and Hang Lung Properties currently anticipate a high downside risk for the bank. As far as the industry as a whole is concerned, the bank remains cautious and will select individual shares. More potentially bad asset disposal may also drive the capitalization rate to expand, leading to further asset depreciation. Even if interest rate cuts come true, the bank does not expect continued excellent performance. The bank lowered the target price of Hang Lung Properties from HK$8 to HK$6.3 to maintain a “neutral” rating; reduced the target price of Sun Hung Kai Properties from HK$72 to HK$68, maintaining a “neutral” rating; lowered the target price of Taikoo Properties from HK$18 to HK$15 to maintain an “overholding” rating; and lowered the target price for Kowloon Properties from HK$22 to HK$17, maintaining a “reduced holdings” rating.