Core Viewpoint - Morgan Stanley's report indicates that Sun Hung Kai Properties (00016) has maintained its annual earnings per share, with dividends meeting expectations and a payout ratio of 50%, resulting in a dividend yield of 4.1% [1] Financial Performance - The company's local property development contract sales reached HKD 42.3 billion for the year, compared to HKD 25.6 billion in the same period last year, with a target of HKD 30 billion for the fiscal year 2026 [1] - Morgan Stanley anticipates that Sun Hung Kai Properties will record over HKD 30 billion in unrecognized sales for the fiscal year 2026, with profit margins remaining similar [1] Market Outlook - Despite negative growth in renewal rents, the company maintains a constructive outlook on the Hong Kong office and retail markets [1] - Significant increases in investment property income are expected from the IGC above the Kowloon High-Speed Rail Station and the Shanghai Xujiahui Center (002561) for the fiscal years 2026 to 2027 [1] Debt and Financing - The company's net debt ratio decreased from 17.8% in the first half of fiscal 2025 to 15.1% for the full year [1] - Financing costs have dropped from 4.4% in the same period last year to 3.7%, benefiting from an increased allocation to floating-rate debt in RMB and HKD [1]

Core Viewpoint - Morgan Stanley reports that Sun Hung Kai Properties (00016) has maintained its annual earnings per share, with dividends meeting expectations and a dividend payout ratio of 50%, resulting in a yield of 4.1% [1] Financial Performance - The company's local property development contract sales reached HKD 42.3 billion for the year, compared to HKD 25.6 billion in the same period last year [1] - The group aims for a target of HKD 30 billion in contract sales for the fiscal year 2026 [1] - Morgan Stanley anticipates that Sun Hung Kai Properties will record over HKD 30 billion in unrecognized sales for the fiscal year 2026, with profit margins remaining similar [1] Market Outlook - Despite negative growth in renewal rents, the company maintains a constructive outlook on the Hong Kong office and retail market [1] - For the fiscal years 2026 to 2027, significant revenue increases are expected from investment properties at the Kowloon High-Speed Rail Station IGC and Shanghai Xujiahui Center ITC [1] Financial Health - The net debt ratio of Sun Hung Kai Properties decreased from 17.8% in the first half of fiscal 2025 to 15.1% for the full year [1] - Financing costs improved from 4.4% in the same period last year to 3.7%, benefiting from an increased allocation to floating-rate debt in RMB and HKD [1] Valuation - Morgan Stanley sets a target price of HKD 102.3 for Sun Hung Kai Properties, which reflects a 50% discount to the net asset value per share [1] - The rating for the stock is "Overweight" [1]

该行将新地目标价由94港元微升至95港元，维持"中性"评级，并因应物业销售入账时间调整，将其2026 至27财年的每股盈利预测下调1%至4%；除非香港楼价在短期内出现显著增长，否则料2026至27财年每 股盈利将相对持平。 美银证券发表报告指，新鸿基地产2025财年业绩略逊于预期。虽然公司正受惠于香港住宅市场触底反弹 的情况，但物业发展利润率较低，或令短期内每股盈利及股息持平。相较同业4%的收益率水平，该行 认为新地收益率进一步压缩空间有限。 ...

Core Viewpoint - Morgan Stanley's research report indicates that Sun Hung Kai Properties' annual earnings per share remained flat, with dividends meeting expectations and a payout ratio maintained at 50%, resulting in a dividend yield of 4.1% [1] Financial Performance - The company's contract sales for local property development in Hong Kong reached HKD 42.3 billion, compared to HKD 25.6 billion in the same period last year [1] - The property development profit margin decreased to 12%, down from 26% in the previous year [1] - Morgan Stanley anticipates that Sun Hung Kai Properties will record over HKD 30 billion in unrecognized sales for the fiscal year 2026, with a similar profit margin [1] Market Outlook - Despite negative growth in renewal rents, the company maintains a constructive outlook on the Hong Kong office and retail market [1] - For the fiscal years 2026 to 2027, significant revenue growth is expected from investment properties at the Kowloon High-Speed Rail Station and Shanghai Xujiahui Center [1] Investment Recommendation - Morgan Stanley has set a target price of HKD 102.3 for Sun Hung Kai Properties, with a rating of "Overweight" [1]

Company News - Sun Hung Kai Properties (00016.HK) reported a revenue of HKD 79.721 billion for the fiscal year 2025, an increase of 11.5% year-on-year; net profit reached HKD 19.277 billion, up 1.2% year-on-year [2] - Sincere Watch International (00732.HK) recorded a net operating revenue of approximately HKD 11.011 billion for the first eight months, a decrease of 5.5% year-on-year; in August, the net operating revenue was about HKD 1.445 billion, down 6.5% year-on-year [2] Financial Activities - China Construction Bank (00939.HK) announced that CCB Financial Leasing plans to increase its capital by HKD 3 billion to CCB Shipping and Aviation [3] Pharmaceutical Developments - Heng Rui Medicine (01276.HK) received approval to conduct clinical trials for RSS0393 ointment, which can alleviate tissue damage and inflammation related to atopic dermatitis [4] - Heng Rui Medicine (01276.HK) also received approval for clinical trials of HRS-4729 injection, a tri-agonist for GLP-1R/GIPR/GCGR [4] Real Estate Sales Performance - China Overseas Land & Investment (00688.HK) reported a contracted sales amount of HKD 150.331 billion for the first eight months, a decline of 16.5% year-on-year; August contracted sales were HKD 18.33 billion, down 0.7% year-on-year [5] - Sunac China (01918.HK) recorded a contracted sales amount of approximately HKD 30.47 billion for the first eight months, a decrease of 13% year-on-year; August contracted sales were HKD 5.39 billion, down 26.7% year-on-year [5] - China Overseas Grand Oceans Group (00081.HK) reported a contracted sales amount of HKD 20.783 billion for the first eight months, a decline of 10.6% year-on-year; August contracted sales were HKD 2.133 billion, an increase of 6.1% year-on-year [5] - Gemdale Corporation (00535.HK) reported a total contracted sales of approximately HKD 7.588 billion for the first eight months, a decrease of 39% year-on-year; August contracted sales were HKD 608 million, down 52.9% year-on-year [5] - Hongyang Real Estate (01996.HK) reported a contracted sales amount of HKD 3.506 billion for the first eight months, a decrease of 42.2% year-on-year; August contracted sales were HKD 299 million, down 48.5% year-on-year [5] - Ronshine China Holdings (03301.HK) reported a contracted sales amount of approximately HKD 2.7 billion for the first eight months, a decline of 46.4% year-on-year; August contracted sales were about HKD 130 million, down 87.9% year-on-year [5] Share Buyback Activities - HSBC Holdings (00005.HK) repurchased 2.01 million shares at a cost of approximately HKD 200 million, with prices ranging from HKD 98.75 to HKD 100.3 [6] - Midea Group (00300.HK) repurchased 310,000 shares at a cost of approximately HKD 25.849 million, with prices ranging from HKD 83.3 to HKD 83.5 [6] - Hang Seng Bank (00011.HK) repurchased 210,000 shares at a cost of approximately HKD 23.799 million, with prices ranging from HKD 112.9 to HKD 113.7 [6] - MGM China Holdings (02282.HK) repurchased 1 million shares at a cost of approximately HKD 15.687 million, with prices ranging from HKD 15.58 to HKD 15.97 [6] Shareholding Changes - Kanglong Chemical (03759.HK) completed a share reduction plan, with a total of 26.6729 million shares reduced [6] - Sinopec Limited (00386.HK) canceled 67.624 million shares that had been repurchased [6]

Financial Data and Key Metrics Changes - The group's underlying profit for the year ended June 30, 2025, was approximately HKD 21.9 billion, reflecting a year-on-year increase of 0.5% driven by high profits from trading and investment properties and lower finance costs, partially offset by impairment provisions of four development properties [3][4] - Reported profit increased by 1.2% year-on-year to HKD 19.3 billion, with underlying earnings per share up 0.5% to HKD 7.54 and reported earnings per share up 1.2% to HKD 6.65 [4][5] - The group's net debt as of June was HKD 93.3 billion, with a net gearing ratio improved to 15.1% from 17.8% in December [5][6] Business Segment Data and Key Metrics Changes - Property Development profit increased by 5.6% to approximately HKD 8.3 billion, mainly due to higher contributions from the Mainland [4] - Net rental income from the Property Rental segment decreased by 3.2% to around HKD 18.4 billion, attributed to a 3.5% drop in net rental income from the Hong Kong portfolio and a 3.2% decrease from the Mainland portfolio [4][14] - The hotel business recorded an operating profit of HKD 615 million, down from HKD 650 million in FY 2024 [5][26] Market Data and Key Metrics Changes - The group's total land bank in Hong Kong was about 57.4 million square feet, including 37.7 million square feet of completed properties and 19.7 million square feet under development [9] - Contracted sales in Hong Kong increased by 6% year-on-year to HKD 26 billion, with major contributors including Yoho West Phase 1 and Novo Land Phase 3B [11] - The Mainland's recognized property sales rose by 214% year-on-year to about HKD 8.4 billion, primarily due to higher sales volume of residential units [21] Company Strategy and Development Direction - The company aims to maintain a stable base of recurring income while leveraging its quality brand and products to drive sales [7][31] - Future projects include Kuala Lumpur Sky Mall and High Speed Rail West Kowloon Terminus development, with a focus on high asset turnover in property development [32][42] - The company plans to adopt a proactive leasing approach and strengthen relationships with tenants to enhance competitive edge [31][43] Management Comments on Operating Environment and Future Outlook - The management noted that the global environment remains volatile, but monetary easing and a growing tourism industry in Hong Kong are expected to drive moderate economic growth [30] - The residential market in Hong Kong is showing signs of stabilization, with expectations of improved buyer confidence and transaction volumes [30][38] - The company remains confident in the long-term prospects of both the Mainland and Hong Kong markets, supported by proactive fiscal and monetary measures [46][47] Other Important Information - The group achieved a significant reduction in net finance costs by 24% year-on-year, driven by lower debt and borrowing costs [6] - The company has been recognized for its commitment to ESG, with an upgraded ESG rating to AA [27] Q&A Session Summary Question: Outlook for the Hong Kong residential market and pricing strategy - Management believes the residential market is nearing a bottom, with low interest rates and rising rents encouraging renters to become buyers [52] Question: Contract sales target for Hong Kong in FY 2026 - The target is set at RMB 30 billion, with several projects planned for launch [55] Question: Expectations for government policy support measures - Management anticipates potential relaxation of stamp duty, which could benefit the residential market [58] Question: Land banking appetite and preferences - The company is focused on acquiring residential land in prime locations while also considering commercial investments [59] Question: Prioritization between new investment, debt repayment, and shareholder returns - The company will focus on paying down debt while looking for the right opportunities for investment [64] Question: Dividend policy and share buyback considerations - The company maintains a policy of paying 50% of underlying profit as dividends and does not currently plan for share buybacks [65] Question: Interest cost adjustments and financing strategies - Interest costs have decreased from 4.4% to 3.7%, with a significant portion of debt at fixed rates [66] Question: Preleasing rates for Shanghai ITC and tenant replacement plans - The Shanghai ITC project is progressing well, with Tower A achieving around 80% occupancy [81]

Financial Data and Key Metrics Changes - The group's underlying profit for the year ended June 30, 2025, was approximately HKD 21.9 billion, reflecting a year-on-year increase of 0.5% driven by high profits from trading and investment properties, alongside lower finance costs, partially offset by impairment provisions of HKD 4 billion on development properties [2] - Reported profit increased by 1.2% year-on-year to HKD 19.3 billion [2] - Underlying earnings per share rose by 0.5% to HKD 7.54, while reported earnings per share increased by 1.2% to HKD 6.65 [3] - The net debt as of June was HKD 93.3 billion, with a net gearing ratio improved to 15.1% from 17.8% [4][5] - Interest coverage improved to around six times compared to 4.6 times a year ago, with net finance costs dropping by 24% year-on-year [5] Business Segment Data and Key Metrics Changes - Property Development profit increased by 5.6% to approximately HKD 8.3 billion, mainly due to higher contributions from the Mainland [3] - Net rental income from the Property Rental segment decreased by 3.2% to around HKD 18.4 billion, attributed to a 3.5% drop in net rental income from the Hong Kong portfolio [3] - The hotel business recorded an operating profit of HKD 615 million, unchanged from FY 2024 [4] - The Group's total operating profit for FY 2025 was slightly down to about HKD 32.2 billion [4] Market Data and Key Metrics Changes - The Group's total land bank in Hong Kong was about 57.4 million square feet, with 37.7 million square feet completed and 19.7 million square feet under development [7] - Recognized property sales in Hong Kong increased by 6% year-on-year to HKD 26 billion, with major contributors including Yoho West Phase 1 and Novo Land Phase 3B [9] - Contracted sales not yet recognized amounted to HKD 35.6 billion, with around HKD 30.1 billion expected to be recognized in FY 2026 [11] - The Mainland's recognized property sales rose by 214% year-on-year to about HKD 8.4 billion, primarily due to higher sales volume of residential units [20] Company Strategy and Development Direction - The Group aims to maintain a stable base of recurring income and leverage its quality brand and products to drive sales [6] - The strategy includes a proactive leasing approach to strengthen competitive edge and cultivate long-term relationships with tenants [30] - New projects in Hong Kong include Kuala Lumpur Sky Mall and High Speed Rail West Kowloon Terminus development, while in Shanghai, three ITC projects are under development [31][44] Management's Comments on Operating Environment and Future Outlook - The global economic environment is expected to remain volatile, but monetary easing and lower interest rates may favor economic growth [29] - In Hong Kong, the residential market shows signs of stabilization, with rising home rents and improved buyer confidence anticipated [29] - The Mainland economy is expected to maintain steady growth supported by proactive fiscal and monetary measures [29] - The Group remains confident in the long-term prospects of both the Mainland and Hong Kong markets [44] Other Important Information - The Group's ESG initiatives have been recognized, with an upgrade to AA in the MSGI ESG rating [27] - The Group has introduced innovative retail formats and family-friendly facilities in its malls to enhance shopper experience [15][16] Q&A Session Summary Question: Outlook for the Hong Kong residential market and pricing strategy - Management believes the market is nearing a bottom due to low interest rates and rising rents, which may lead renters to become buyers [50] - Upcoming launches may see more aggressive pricing, especially for projects like Koolen and Sky [52] Question: Contract sales target for Hong Kong in FY 2026 - The target is set at HKD 30 billion, influenced by potential uncertainties in project approvals [54] Question: Expectations for government policy support - Management anticipates potential relaxation of stamp duty, which could benefit the residential market [56] Question: Land banking appetite and focus - The Group is interested in acquiring residential land, particularly in prime locations, while also considering commercial investments [57] Question: Prioritization between new investments, debt repayment, and shareholder returns - The focus is currently on paying down debt and improving liquidity, with land acquisition prioritized when opportunities arise [62] Question: Dividend policy and share buyback considerations - The Group maintains a policy of paying 50% of underlying profit as dividends and does not plan to initiate share buybacks at this time [63] Question: Interest cost adjustments and financing strategies - Interest costs have decreased from 4.4% to 3.7%, with a significant portion of debt at fixed rates [63] Question: Preleasing rates for Shanghai ITC and tenant replacement plans - The Shanghai ITC project is progressing well, with Tower A achieving around 80% occupancy, and management is in talks with potential new tenants for vacant spaces [80][81]

FY2025 Annual Results 4 September 2025 24 February 2022 FY2025 Annual Results Cover 2 Contents | | Page | | --- | --- | | Financial Review – FY2025 | 4 | | Property Business – Hong Kong | | |  Land Bank | 10 | |  Property Development | 13 | |  Property Investment | 17 | | Property Business – Mainland | | |  Land Bank | 25 | |  Property Development | 27 | |  Property Investment | 30 | | Hotel Business | 34 | | Sustainability | 36 | | Market and Business Prospects | 38 | | Appendix | 42 | FY2025 Annual ...

Group 1 - The company reported a revenue of HKD 79.721 billion for the fiscal year 2024/25, representing a year-on-year increase of 11.49% [1] - The profit attributable to shareholders was HKD 19.277 billion, showing a year-on-year growth of 1.21% [1]

格隆汇9月4日丨新鸿基地产(00016.HK)公布2024/25年度全年业绩，收入为797.21亿港元，同比增加 11.5%；营业溢利为260.78亿港元，同比减少2.5%；公司股东应占本年度溢利为192.77亿港元，同比增 加1.2%。董事局议决派发末期股息每股港币2.8元。 ...