Zhi Tong Cai Jing·2025-09-05 02:38Core 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]