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 - The core viewpoint of the article indicates that the management of Cheung Kong (Holdings) believes that the Hong Kong residential market may have bottomed out, with the Centaline City Leading Index rising by 3% year-to-date, although pricing power has not yet recovered [1] - The office market is expected to take a longer time to recover due to oversupply, with Cheung Kong's rental rate for the Cheung Kong Center Phase II currently close to 30% [1] - Morgan Stanley anticipates that Cheung Kong may wait for a suitable price before leasing out its properties, given their advantageous location [1] Group 2 - Luxury retail rental prices are still under pressure for downward adjustments, while retail properties in areas with stable foot traffic are expected to perform more steadily [1] - Due to limited land reserves, Cheung Kong may delay the sale of the Kai Tak project and is likely to retain more cash on hand [1] - Morgan Stanley currently rates Cheung Kong as "in line with the market," with a target price of HKD 39 [1]

Group 1: Company Performance - Longfor Group (01113) reported a revenue of HKD 25.386 billion for the first half of 2025, representing a year-on-year increase of 15.3% [1] - Shareholders' profit attributable to the company was HKD 6.302 billion, a decline of 26.7% compared to the previous year [1] - Basic earnings per share were HKD 1.80, with an interim dividend proposed at HKD 0.39 per share [1] Group 2: Property Sales and Rental Income - The group experienced an increase in property sales revenue in the first half of 2025, although related profits decreased [1] - The revenue from leasing operations for the group's properties showed a slight decline compared to the same period in 2024 [1] - The newly completed Changjiang Group Center Phase II, located in the core business district of Central, is actively being promoted for leasing [1] Group 3: Market Conditions and Strategies - The retail and commercial property leasing sector in Hong Kong remained weak during the first half of 2025 [1] - The group's hotel and serviced apartment business saw moderate revenue growth, but related profits slightly decreased due to ongoing cost pressures in the industry [2] - The group plans to optimize its hotel and serviced apartment business mix to enhance revenue from both hotel guests and long-term residents [2]