Jin Rong Jie·2025-09-05 02:55Core Viewpoint - Morgan Stanley's 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 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 the fiscal year 2026 [1] - Morgan Stanley anticipates that Sun Hung Kai 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] - Significant revenue increases are expected from investment properties at the Kowloon High-Speed Rail Station and Shanghai Xujiahui Center (ITC) in the fiscal years 2026 to 2027 [1] Financial Health - 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 improved, dropping from 4.4% in the same period last year to 3.7%, benefiting from increased allocation to floating-rate debt in RMB and HKD [1]