Kowloon Warehousing Group's (00004.HK) share price has rebounded by about 33% since March, with a strong outperformance of 39 percentage points since March, according to a report released by HSBC Global. The bank believes that the market is beginning to consider concerns about the company's profit growth outlook, with the market consensus forecast falling 19% to 21% below the previous six months, and Approaching the bank's cautious profit estimates.

The bank believes that despite the sale of its Kukura Hong Kong property business or benefiting from future loss cycles, the forecast dividend yield of 2.5 per cent and moderate earnings growth next year may not be attractive to investors. The bank maintains a target price of $17.3 on the Kuokura, with 5% downside space compared to the current price. The bank said that despite concerns about the fundamentals of the Nukura business, it raised its rating to “Hold” on the basis that valuations were no longer expensive and the share price broadly reflected the bank's concerns about its growth.