According to the Securities Times app, Morningstar's research report stated that it maintains a fair value forecast of 115 Hong Kong dollars for shk ppt (00016). The bank has downgraded the base profit forecast for the company's 2025 fiscal year by 13%, while maintaining the forecast for 2026-2027. It believes that the current valuation of Sun Hung Kai Properties is too low, and Morningstar's preferred option is henderson land (00012), which has a dividend yield of 7.5%, higher than shk ppt's 5.5%. Both companies have a debt-to-equity ratio of 18-22%, which is considered healthy.

Morningstar expects shk ppt's real estate development operating margin in Hong Kong and Mainland China to be between 20-40%, and forecasts a 10% compound annual growth rate (CAGR) in investment property income over the next five years. Investment properties are expected to maintain the existing operating margin of 75-80%. Valuing the company's agricultural land reserves using the discounted cash flow (DCF) method is challenging due to the highly uncertain conversion process, among other factors. Morningstar values it at HK$1500 per square foot.

For the hotel business, Morningstar anticipates that revenue will recover to 2019 fiscal year levels in 2026. Despite the Fed's interest rate cut, the pressure on real estate sales and profits continues, and buyers may wait for mortgage rates to drop to an acceptable range before entering the market. Shk ppt's performance in the 2024 fiscal year fell below expectations, with net profit decreasing by 9% year-on-year to 19 billion Hong Kong dollars, mainly due to a 30.5% year-on-year decrease in real estate sales and fair value losses from property investments. The mid-term dividend is 2.8 Hong Kong dollars, resulting in a total annual dividend of 3.75 Hong Kong dollars, a 24.2% decrease compared to the previous year.