Zhi Tong Cai Jing·2025-09-08 09:12Core Viewpoint - Dahua Jixiang's report indicates that Sun Hung Kai Properties (00016) is expected to see a 0.5% growth in basic net profit for the fiscal year 2025, aligning with expectations, primarily benefiting from strong profits in Chinese property development and a decrease in financial costs [1] Group 1: Financial Performance - The basic net profit growth of 0.5% for fiscal year 2025 is mainly attributed to robust profits from property development in China and reduced financial costs [1] - The performance of investment properties is mixed, with Hong Kong office buildings outperforming the market [1] Group 2: Future Prospects - The completion and opening of IGC in Hong Kong and ITC in Shanghai are anticipated in fiscal year 2026, which will support recurring income growth [1] - Management has committed to maintaining a dividend payout ratio of 50% [1] Group 3: Investment Rating - The firm maintains a "Buy" rating for Sun Hung Kai Properties, with a target price of HKD 103, implying a forecasted yield of 4% for fiscal year 2026 [1]