Core Viewpoint - The report from Shenwan Hongyuan initiates coverage on Kerry Properties (00683) with a target price of HKD 26.4 and a "Buy" rating, highlighting the synergy between high-end residential development and quality IP leasing [1] Business Overview - Kerry Properties is expected to achieve a revenue of HKD 19.5 billion in 2024, representing a year-on-year increase of 49%, with property development, IP rental, and hotel operations contributing 66%, 25%, and 9% respectively [2] - The company's land bank totals 49.71 million square feet, with 42% in development properties, 37% in investment properties, 11% in hotels, and 10% in properties held for sale, primarily located in mainland China and Hong Kong [2] IP and Hotel Operations - The company's IP value reached HKD 86.3 billion in the first half of 2025, a year-on-year increase of 14%, with 67% from mainland China and 33% from Hong Kong [3] - Total IP and hotel area is 21.33 million square feet, with major cities accounting for 73% of the total area; rental income from IP and hotels showed slight declines due to market conditions, but occupancy rates remain above market averages [3] - The company plans to increase its IP and hotel area by 760,000 square feet by 2031, achieving a compound annual growth rate (CAGR) of 7% from 2024 to 2031 [3] Real Estate Development - In the first half of 2025, the company achieved sales of HKD 16.2 billion, a year-on-year increase of 130%, with mainland China and Hong Kong contributing 66% and 34% respectively [3] - The Shanghai Jinling Huating project is a key driver for mainland sales, with significant sales figures and expected profitability due to relaxed price limits [3] - In Hong Kong, sales from luxury projects have been crucial, with the company focusing on high-end residential developments [3] Financial Health and Dividends - The company maintains a strong financial position with total borrowings of HKD 59.6 billion, a year-on-year decrease of 2%, and a net debt ratio of 38.4% as of the first half of 2025 [4] - The company has consistently paid dividends since 2017, with a dividend per share (DPS) of HKD 1.35, resulting in a high dividend yield of 6.9% [4]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][7]. Core Insights - The company is positioned as a high-end residential developer with a focus on premium commercial assets, anticipating a revaluation of its quality IP [6][7]. - The company is expected to achieve significant revenue growth, with projected revenues of HKD 19.5 billion in 2024, representing a year-on-year increase of 49% [6]. - The financial outlook includes a forecasted net profit of HKD 1.75 billion in 2025, reflecting a substantial year-on-year growth of 116% [6][7]. Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: HKD 13.09 billion - 2024: HKD 19.5 billion - 2025E: HKD 20.17 billion - 2026E: HKD 15.08 billion - 2027E: HKD 24.44 billion - Year-on-year growth rates for revenue are projected at -10.3% for 2023, 49.0% for 2024, and 3.5% for 2025 [5]. - The net profit forecast is as follows: - 2023: HKD 3.24 billion - 2024: HKD 0.81 billion - 2025: HKD 1.75 billion - 2026: HKD 1.62 billion - 2027: HKD 4.03 billion - The projected net profit growth rates are 17.7% for 2023, 75.1% for 2024, and 116.1% for 2025 [5][6]. Business Structure - The company operates a diversified business model with revenue contributions from property development (66%), IP leasing (25%), and hotel operations (9%) [6][27]. - The geographical revenue distribution shows a focus on mainland China (66%) and Hong Kong (34%) [6][27]. Property Development - The company achieved a sales amount of HKD 16.2 billion in the first half of 2025, a year-on-year increase of 130%, with mainland sales contributing HKD 10.6 billion [6][42]. - The company is focusing on high-end residential projects, particularly in Shanghai and Hong Kong, with significant sales from the Jinling Huating project [6][45]. IP and Hotel Operations - The company’s IP value reached HKD 86.3 billion in the first half of 2025, with a year-on-year increase of 14% [6]. - The total area of IP and hotel operations is projected to increase by 36% by 2031, with a compound annual growth rate (CAGR) of 7% [6][7]. Financial Health and Dividends - The company maintains a healthy financial position with a net debt ratio of 38.4% as of the first half of 2025, expected to decrease to around 30% by the end of 2026 [6]. - The company has consistently provided dividends, with a dividend per share (DPS) of HKD 1.35 since 2017, resulting in a high dividend yield of 6.9% [6][7].

Group 1 - The core point of the article highlights that Guo Konghua, the son of Malaysian tycoon Guo Huanian, purchased a luxury apartment in Shanghai for 117 million RMB, stirring interest in the high-end real estate market [2] - The transaction involves a four-bedroom unit in the Jinling Huating project, with a total area of approximately 449 square meters, which is still under construction [2] - The purchase price per square meter is approximately 260,300 RMB, surpassing the registered price of 206,000 RMB per square meter for previous batches in the same project, and setting a new benchmark compared to other luxury developments [2]

Core Viewpoint - The recent purchase by Guo Konghua, the chairman of Kerry Properties, of a luxury apartment in Shanghai has stirred significant interest in the high-end real estate market, highlighting both personal investment strategies and broader market dynamics [2][11]. Group 1: Transaction Details - Guo Konghua acquired a four-bedroom unit in the Shanghai Jinling Huating project for RMB 117 million (approximately HKD 127.7 million), with a construction area of about 449 square meters [2]. - The transaction price per square meter was approximately RMB 260,300, surpassing the registered price of RMB 206,000 per square meter for other units in the same project [4]. - The sale is expected to generate a net profit of around RMB 23 million for the company, indicating a profit margin of approximately 19.66% for this transaction [6]. Group 2: Market Context - The Jinling Huating project has received a pre-sale permit for 40 units, with an average price of RMB 206,000 per square meter, while some units are priced significantly higher, reaching RMB 326,800 per square meter [5]. - The overall sales performance of Jinling Huating has been strong, with a total sale of approximately HKD 9.922 billion (around RMB 90.1 billion) for 147,700 square meters of saleable area in the first half of the year [10]. - The high-end real estate market in Shanghai is experiencing a supply shortage, with a reported decline of over 50% in the supply of luxury homes priced above RMB 30 million from January to October [14]. Group 3: Strategic Implications - Guo Konghua's personal investment in the luxury property serves as a strong endorsement for the project, effectively acting as a marketing strategy that enhances visibility and credibility in the high-end market [11]. - The trend of developers purchasing their own luxury properties is becoming more common, reflecting a strategic move to secure high-quality assets amid a tightening supply environment [13]. - The luxury market is entering a phase of "stock game," where competition for existing high-quality assets intensifies, potentially leading to new strategies for asset securitization and liquidity management among developers [16].

Core Viewpoint - The recent purchase of a luxury apartment by Guo Konghua, son of Malaysia's richest man, has stirred significant interest in Shanghai's high-end real estate market, revealing a potential strategy of asset retention and market positioning by the company [1][2]. Company Summary - Guo Konghua acquired a four-bedroom unit in the Shanghai Jinling Huating project for RMB 1.17 billion (approximately HKD 1.277 billion), with a construction area of about 449 square meters, while the unit is still under construction [2][3]. - The transaction is expected to generate a profit of approximately RMB 23 million for the company, indicating a profit margin of about 19.66% for the sale of this property [5][6]. - The Jinling Huating project has a sales average of around RMB 19,000 per square meter, with the highest unit price reaching RMB 32,680 per square meter, setting a new record for new home prices in Shanghai [6][7]. Industry Summary - The luxury real estate market in Shanghai is experiencing a significant supply reduction, with a reported 50% decrease in the availability of properties priced over RMB 30 million from January to October this year [14]. - The market is shifting towards a "stock game" phase, where high-end properties are becoming increasingly scarce, leading to intensified competition among developers for quality assets [16]. - The recent easing of purchase restrictions in Shanghai has led to a resurgence in high-end property transactions, with a 184% year-on-year increase in sales for properties priced over RMB 30 million in the first half of 2025 [16].

Core Viewpoint - The recent purchase by Guo Konghua, the chairman of Kerry Properties, of a luxury apartment in Shanghai has stirred significant interest in the high-end real estate market, highlighting the strategic moves of developers in a tightening market [1][3][12]. Summary by Sections Transaction Details - Guo Konghua acquired a four-bedroom unit in the Shanghai Jinling Huating project for RMB 117 million (approximately HKD 127.7 million), with a construction area of about 449 square meters [1][3]. - The transaction price per square meter was approximately RMB 260,300, surpassing the registered price of RMB 206,000 for other units in the same project [3][4]. Project Insights - The Jinling Huating project has recently received pre-sale permits for 40 units, with an average price of RMB 206,000 per square meter [3][5]. - The project is expected to generate a net profit of approximately RMB 23 million for Kerry Properties, indicating a profit margin of about 19.66% [7][8]. Market Context - The luxury real estate market in Shanghai is experiencing a supply contraction, with a reported 2,624 units priced above RMB 30 million available from January to October 2023, a decrease of over 50% year-on-year [19][20]. - The high-end market is entering a "stock game" phase due to the anticipated continued reduction in land supply within the inner ring of Shanghai [21]. Strategic Implications - Guo Konghua's purchase is seen as a signal of confidence in the future development of Kerry Properties' projects, serving as a form of "free publicity" for the Jinling Huating project [12][13]. - The trend of developers purchasing their own luxury units is becoming more common, reflecting a strategic approach to managing inventory and capitalizing on asset appreciation [19][22].

Core Viewpoint - The influx of global capital into Shanghai's luxury real estate market is exemplified by the recent purchase of a luxury apartment by the chairman of Kerry Properties, highlighting the strong demand for high-end properties in the area [1][5]. Group 1: Company Actions - Kerry Properties announced the purchase of a 449 square meter luxury apartment in Huangpu District for approximately 117 million yuan, with an expected profit of about 23 million yuan after costs [1][5]. - The company has invested a total of 22.1 billion yuan in land acquisition in Huangpu District, with a total development area of 655,000 square meters [1][5]. Group 2: Project Details - The Jinling Huating project, developed by Kerry Properties, has seen significant sales success, with the first phase selling out 158 units within three hours, generating a total sales amount of 9.234 billion yuan [6][12]. - The second phase of the project offered 120 larger units, achieving an average price of 205,000 yuan per square meter, with a record-breaking unit price of 326,800 yuan per square meter for a top-floor duplex [6][12]. Group 3: Market Analysis - The luxury real estate market in Shanghai is experiencing high demand due to limited supply and a large base of high-net-worth individuals seeking premium properties [12]. - In September, 14 new luxury projects were launched in Shanghai, with a total of 1,619 units available, achieving an overall absorption rate of 72% [12].

Core Insights - Kerry Properties (00683.HK) announced the acquisition of a 449 square meter residential unit in Shanghai for approximately 117 million yuan, with expected gains of about 23 million yuan from the transaction [1] - The proceeds from the sale will be utilized for the company's general operating funds [1] - The property is part of the Jinling Huating project, which is one of the most anticipated luxury residential projects in Shanghai for 2025 [1] Sales Performance - The first batch of 158 luxury units at Jinling Huating sold out within three hours at an average price of 189,000 yuan per square meter, generating a total revenue of 9.234 billion yuan [1] - The second phase of the project achieved an average price of 205,000 yuan per square meter, setting a record for high-rise residential prices in Shanghai for 2025, with total sales reaching 9.843 billion yuan in a single day [1] - The third phase of Jinling Huating has been approved and will offer 39 units of approximately 370 square meters and one penthouse of about 730 square meters, with an average price of 206,000 yuan per square meter, reflecting an increase of about 1,000 yuan per square meter compared to the previous batch [2]

Core Viewpoint - The phenomenon of global capital inflow into Shanghai's luxury real estate market is exemplified by the recent purchase of a luxury apartment by the chairman of Kerry Properties, highlighting the attractiveness of high-end properties in the region [1][5]. Company Summary - Kerry Properties (00683.HK) announced that its chairman, Guo Konghua, purchased a 449 square meter luxury apartment in Huangpu District for approximately 117 million yuan, with an expected profit of about 23 million yuan after costs [1][2]. - The company has invested a total of 22.1 billion yuan in land acquisition in Huangpu District, with a total development area of 655,000 square meters [2][3]. Project Summary - The Jinling Huating project, developed by Kerry Properties, is a significant residential project in Shanghai's Huangpu District, currently in the pre-sale stage [3][4]. - The project has seen remarkable sales performance, with the first phase selling out 158 units within three hours, generating a total sales amount of 9.234 billion yuan [4][5]. - The second phase offered 120 larger units, achieving an average price of 205,000 yuan per square meter, with a record-breaking unit price of 326,800 yuan per square meter for a top-floor duplex [4][5]. Market Analysis - The luxury real estate market in Shanghai is experiencing a surge due to a combination of limited supply in prime locations and strong demand from high-net-worth individuals [10][11]. - The ongoing urban renewal efforts in Shanghai have increased the availability of premium land, contributing to a more vibrant luxury market [10][11]. - In September, 14 new luxury projects were launched in Shanghai, with a total of 1,619 units available, reflecting a 72% overall absorption rate [11].

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: Kerry Properties Limited 嘉里建設有限公司（於百慕達註冊成立之有限公司） 呈交日期: 2025年11月3日 I. 法定/註冊股本變動 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00683 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 1,451,305,728 | | 0 | | 1,451,305,728 | | 增加 / 減少 (-) | | | 0 | | 0 | | | | 本月底結存 | | | ...