Ge Long Hui·2025-10-16 02:24Core Viewpoint - UBS report indicates that Sun Hung Kai Properties, as one of the largest developers in Hong Kong, has benefited from the recovery in the residential market, with its stock price rising by 29% year-to-date. However, due to a dividend yield below 4%, the risk-reward profile is considered balanced, as there is limited upside for earnings per share in the fiscal year 2026 [1] Group 1 - UBS downgraded Sun Hung Kai's rating from "Buy" to "Neutral" with a target price of HKD 96 [1] - Despite some investors perceiving the low price-to-book ratio or high net asset value discount, only 20% of Sun Hung Kai's net asset value is attributed to Hong Kong residential assets [1] - The likelihood of narrowing the net asset value discount is low unless the company engages in capital recycling for its investment properties or changes its shareholder return policy [1]