Daiwa published a research report that under the impact of the epidemic, the medium-term net profit of 0016.HK can still grow by 30.2% year-on-year, believing that the impact of the epidemic on SHKP's core operations is declining, and that the prospect of its property sales business in Hong Kong is still strong, which is a good sign for the group's profit prospects in the next few years, coupled with the fact that the group still has considerable basic value to be released, reiterate its purchase rating, and the target price continues to look at HK $156.8.

According to Daiwa, SHKP's property sales profit in the first half of the fiscal year increased by 80.4% to HK $112.366 billion, mainly due to the increase in property sales profit and the increase in property sales profit margin to 46%. As of the end of last year, SHKP's unrecorded contract sales were about HK $27.6 billion.

Daiwa continued to point out that although SHKP's retail rental income in Hong Kong fell by 13% year-on-year as a result of the epidemic, the overall rental income fell only 3%, driven by a 2% increase in office rental income in Hong Kong. As for the 18.8% year-on-year increase in rental income in China, it is expected that SHKP's leased property portfolio in the mainland will increase by more than 60% to 25 million square feet in the next four years, which will help consolidate its rental income prospects.

The bank is of the view that the SHKP rent and property sales business have entered the harvest period and will be recognized by the capital market if the Group can increase dividends, sell non-core assets and carry out share repurchases.