Core Viewpoint - Morgan Stanley indicates that the Hong Kong residential market may have bottomed out, maintaining a "market perform" rating for Cheung Kong Property (01113) with a target price of HKD 39 [2] Company Summary - Cheung Kong Property's management believes the Hong Kong residential market has likely reached its lowest point, with the Centaline City Leading Index rising by 3% year-to-date, although pricing power has not yet recovered [2] - The company has limited land reserves and may delay the sale of the Kai Tak "Floral Sea" project, opting to retain more cash on hand [2] - The rental rate for the Cheung Kong Center Phase II is currently close to 30%, and the company is expected to wait for a more favorable price before leasing [2] Industry Summary - The office market in Hong Kong is facing an oversupply issue, which is expected to prolong the recovery period [2] - Luxury retail rental rates are under downward pressure, while retail properties in areas with stable foot traffic are anticipated to perform more steadily [2]

Core Viewpoint - Morgan Stanley's report indicates that the Hong Kong residential market may have bottomed out, while the office market is expected to take a longer time to recover due to oversupply [1] Group 1: Residential Market - The management of Cheung Kong (01113) expressed that the Hong Kong residential market might have reached its lowest point [1] - The Centaline City Leading Index has increased by 3% year-to-date, but pricing power has not yet recovered [1] Group 2: Office Market - The office market is facing oversupply issues, leading to a prolonged recovery period [1] - Cheung Kong's rental rate for the second phase of the Cheung Kong Center is currently close to 30% [1] Group 3: Company Strategy - Due to limited land reserves, Cheung Kong may wait for the right timing to launch the Kai Tak "Flower Sea" project and is inclined to retain more cash on hand [1] - Morgan Stanley maintains a "market perform" rating for Cheung Kong with a target price of HKD 39 [1] Group 4: Retail Market - Luxury retail rents are still under pressure for downward adjustments, while retail properties in areas with stable foot traffic are expected to perform more steadily [1]

Group 1: Stock Performance and Market Background - The stock price of Henderson Land Development (00012.HK) closed at HKD 25.91 on August 11, 2025, reflecting a 1.5% increase from the previous trading day, with a trading volume of 74,500 lots and a total market capitalization of HKD 125.424 billion [4] - The company's 2024 financial report indicated a revenue of HKD 23.388 billion and a net profit of HKD 6.744 billion, with earnings per share at HKD 1.3 and a price-to-earnings ratio of 21.9 times [4] - The "withdrawal of cooling measures" policy implemented in February 2024 significantly reduced home buying costs, stimulating market demand [4] Group 2: Industry Sales Data and Growth Drivers - In July 2025, the number of residential property sale agreements in Hong Kong reached 5,766, marking a year-on-year increase of 54.8%, with the primary market seeing over 1,000 transactions for six consecutive months [6] - The private residential price index rose for three consecutive months, with a year-to-date decline of only 0.86%, while the rental index increased by 1.61% over the same period [6] - The introduction of the talent import scheme is expected to attract over 75,000 high-end talents and their families to Hong Kong, boosting rental and purchasing demand [6] Group 3: Future Outlook and Investment Strategy - The property sales of Henderson Land Development are likely to exceed expectations due to the overall market recovery and favorable policies, particularly in high-end residential and core area projects [5] - The company is expected to benefit from the ongoing recovery in the Hong Kong property market, driven by lower interest rates and improved market confidence [5] - The long-term demand is supported by the Northern Metropolis planning, which includes 176,000 residential units, and the talent scheme [6]

Core Viewpoint - The company reported a significant decline in net profit for the first half of the year, indicating challenges in the Hong Kong retail and commercial property leasing market, while expressing interest in further investments in Hong Kong [1][2][3] Financial Performance - The company's net profit attributable to shareholders for the first half of the year was HKD 6.302 billion, a decrease of 26.75% year-on-year [1] - Earnings per share stood at HKD 1.8, with an interim dividend maintained at HKD 0.39 [1] - The revaluation surplus before investment properties increased by 1.2% to HKD 6.805 billion, while property sales revenue rose by 58.9% to HKD 7.366 billion, although sales revenue decreased by 2.9% to HKD 1.768 billion due to discounts offered in a weak market [2] Investment Strategy - The company aims to maintain a diversified investment and asset portfolio, leveraging its financial strength and low capital debt ratio to seize global market opportunities [1][2] - There is a strong interest in investing more in commercial and retail properties in Hong Kong, as well as land acquisition, contingent on attractive returns and pricing [2][4] Property Development - The company anticipates profits from multiple projects in Hong Kong, Singapore, and Beijing in the second half of the year, although losses from the Blue Coast project may offset some contributions [3] - The Blue Coast project has sold 900 units out of 1,200, generating HKD 15.2 billion in cash, with an average transaction price of HKD 17 million per unit [3] Rental and Occupancy Rates - The overall occupancy rate for the Hong Kong investment property portfolio is approximately 86%, with specific rates of 75% for the first phase of the Changjiang Center [4] - The hotel business reported an occupancy rate of 89.1% for overnight stays and 88.4% for long-term serviced apartments [5] Financial Position - As of June 30, the company had bank deposits and fixed deposits totaling HKD 33 billion, with a net debt of HKD 21.4 billion, resulting in a net debt to total capital ratio of about 5% [5]

Core Viewpoint - The company reported a significant decline in net profit for the first half of the year, with a 26.75% drop year-on-year, amounting to HKD 6.302 billion, while maintaining a stable interim dividend of HKD 0.39 per share [1] Financial Performance - The company's investment property revaluation profit increased by 1.2% to HKD 6.805 billion, while property sales revenue surged by 58.9% to HKD 7.366 billion, although sales profit decreased by 2.9% to HKD 1.768 billion due to discounts offered in a weak market [2] - Hong Kong property sales revenue rose by 7.8% to HKD 2.803 billion, but sales profit plummeted by 92.9% to HKD 74 million [2] - The company reported a bank balance and fixed deposits of HKD 33 billion, with a net debt of HKD 21.4 billion, resulting in a net debt to total capital ratio of approximately 5% [5] Business Strategy - The company aims to maintain a diversified investment and asset portfolio, leveraging its financial strength and low capital debt ratio to seize global market opportunities [1] - There is a strong interest in investing more in commercial and retail properties in Hong Kong, as well as land acquisition, contingent on attractive returns and pricing [2][4] - The company plans to continue selling Blue Coast II and pre-selling Kai Tak Flower Sea in the second half of the year [4] Market Conditions - The retail and commercial property leasing sector in Hong Kong remains weak, with rental income and profits from the company's properties showing slight declines compared to the same period in 2024 [1] - The overall occupancy rate of the Hong Kong investment property portfolio is approximately 86%, with specific properties like the Changjiang Center Phase I at 75% occupancy [4] - The hotel business showed a slight increase in revenue, with an occupancy rate of 89.1% for overnight hotels and 88.4% for long-term serviced apartments [5]