Core Viewpoint - Meilun Group (01200) has seen a stock price increase of over 7%, currently at HKD 2.83, following the announcement of significant profit growth expectations for the fiscal year ending December 31, 2025 [1] Financial Performance - The preliminary review of the unaudited consolidated management accounts for the 11 months ending November 30, 2025, indicates a profit before tax of approximately HKD 460 million, exceeding the profit of approximately HKD 371 million for the full year ending December 31, 2024, by more than 20% [1] - The company anticipates a substantial increase in profits for the fiscal year ending December 31, 2025, based on the strong performance of all business units during the 11-month period [1] Business Units Performance - The profit increase is primarily attributed to the impressive performance of "Meilun Property" and "Hong Kong Property" during the ongoing recovery of the residential market [1] - The company has successfully achieved business growth through a series of management measures, enhancing its market share in both the primary and secondary residential markets [1] - Continuous efforts to improve operational efficiency and focus on retaining and attracting top talent have contributed to providing high-quality services to clients [1]

Group 1: Market Overview - Since the low point in March 2025, Hong Kong residential prices have rebounded over 4% [1] - Positive signs for continued recovery in the residential market include resilient stock market performance, suppressed demand being released, and strong transaction volumes [1] - The bank anticipates a further rebound of approximately 5% in property prices by the end of 2026 [1] Group 2: Market Dynamics - There is a decline in the number of listings in the secondary market, and more transactions are occurring above valuation prices, fueling a "fear of missing out" sentiment [1] - Interest from mainland buyers remains strong, with expected structural population growth [1] - The financial sector is recovering, contributing significantly to Hong Kong's GDP [1] Group 3: Risks and Preferences - The bank's constructive outlook is contingent on the continued resilience of the Hang Seng Index, as the real estate market is driven by sentiment [1] - Preferred developers include Sino Land (00083) with a low risk profile and a 6% dividend yield, followed by Henderson Land (00012) with a higher dividend yield of 6.6%, albeit with some risk of dividend cuts [2] - The bank would consider buying New World Development (00016) if its stock price falls to around HKD 85 [2]