Zhi Tong Cai Jing·2026-02-06 03:47Core Viewpoint - Morgan Stanley's report indicates that Sun Hung Kai Properties (00016) is expected to announce its interim results for the fiscal year ending December 2026 at the end of February, with a projected year-on-year increase of 13% in basic earnings per share to HKD 3.89, while maintaining an interim dividend of HKD 0.95 per share [1] Group 1: Financial Performance - The report anticipates a profit margin for property development projects to reach high double-digit levels due to the accounting of completed inventory at lower costs and recent price increases for new sales [1] - The expected earnings per share growth of 13% reflects strong operational performance and market conditions [1] Group 2: Project Developments - The Sierra Sea Phase 2A & 2B project is performing well, and the company is expected to launch a luxury residential project, Tianxi-Hai Phase 2, in the Kai Tak runway area [1] - The initial pricing for the second phase is anticipated to exceed HKD 45,000 per square foot, with a projected profit margin of over 15%, based on the first phase's average transaction price exceeding HKD 50,000 per square foot [1] Group 3: Investment Rating - Morgan Stanley has assigned an "Overweight" rating to Sun Hung Kai Properties, with a target price set at HKD 120 [1]