Ge Long Hui·2025-09-05 02:40Core Viewpoint - Goldman Sachs reports that Sun Hung Kai Properties' basic earnings per share for the second half of the fiscal year ending June 30 is HKD 3.93, representing a 9% increase compared to the previous half but an 11% decrease year-on-year, and 7% lower than Goldman Sachs' expectations [1] Financial Performance - Revenue was 24% lower than Goldman Sachs' expectations, primarily due to lower-than-expected contributions from property development (DP) and other non-property businesses [1] - Property development revenue was 39% below the bank's forecast, attributed to lower-than-expected contributions from both the Hong Kong and mainland markets [1] Earnings Forecast Adjustments - Following the analysis of the second half fiscal performance, management guidance, and the latest revenue recognition plans, Goldman Sachs has revised its earnings per share forecasts for Sun Hung Kai Properties for the fiscal years 2026 to 2028 downwards by 14%, 12%, and 2% respectively [1] - Dividend forecasts have been adjusted downwards by 4%, 3%, and then increased by 3% for the same periods [1] - The average payout ratio is expected to be around 49% over the next three years, compared to an average of 52% over the past five years, with management reaffirming a maximum dividend payout ratio of 50% [1] Target Price Adjustment - Goldman Sachs has lowered its 12-month target price by 8%, from HKD 104 to HKD 96, while maintaining a "Buy" rating, as the company is expected to continue benefiting from the gradual turnaround in the Hong Kong property market cycle [1]