Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 164.37 [1][5] Core Insights - The company reported a strong revenue growth of 32% year-on-year, achieving HKD 52.7 billion in revenue for FY1H26, with a core net profit of HKD 12.2 billion, up 17% year-on-year [1][2] - The growth is primarily driven by the release of profits from mainland property development, sales of investment properties, and reduced interest expenses [2] - The company is actively expanding its land reserves in Hong Kong after reducing its debt levels, positioning itself to benefit from the recovery of the Hong Kong real estate market [3] Summary by Sections Financial Performance - For FY1H26, the core net profit growth was attributed to a HKD 2.7 billion increase in profits from mainland property development, mainly from high-margin projects in Hangzhou and Suzhou [2] - The sale of investment properties in Hong Kong contributed an additional HKD 0.8 billion in realized fair value gains [2] - The company’s financial expenses decreased by HKD 0.6 billion due to reduced interest-bearing debt and financing costs [2] Property Development - The company’s equity sales in Hong Kong decreased by 30% year-on-year to HKD 17.4 billion, but subsequent sales from the SIERRA SEA Phase II project contributed HKD 9 billion [3] - The company expects equity sales to reach HKD 35 billion for FY26, continuing to lead among Hong Kong property developers [3] Property Leasing - Despite rental pressures in Hong Kong and mainland cities, the company’s rental income remained stable, with a slight decline of 1% in rental yield [4] - Upcoming projects in Hong Kong and mainland China are expected to increase the company’s investment property area by 10% and 46% respectively by FY28, driving rental income growth [4] Profit Forecast and Valuation - The forecasted core net profits for FY26-28 are HKD 23.3 billion, HKD 24.5 billion, and HKD 25.4 billion respectively, reflecting slight upward adjustments in project price assumptions [5] - The company’s NAV is estimated at HKD 635.1 billion, with a target price adjustment to HKD 164.37, reflecting a 25% discount based on the recovery trend in the Hong Kong real estate market [5][25]

FY2026 Interim Results 26 February 2026 24 February 2022 FY2026 Interim Results Cover 2 Contents In no event will SHKP, its subsidiaries, associated or affiliated companies or any of their respective directors, employees, agents, representatives or associates be responsible or liable for damages of whatever kind or nature (whether based on contract, tort or otherwise, and whether direct, indirect, special, consequential, incidental or otherwise) resulting from access to or use of any information contained i ...

Group 1 - The core viewpoint indicates a decline in transactions in the secondary property market, with a notable drop of 12.5% week-on-week, as only 7 transactions were recorded in the top ten estates [1] - The new development SIERRA SEA saw a strong response, with all 318 units sold out on the first day, contributing to over 350 transactions in the primary market during the weekend [1] - The secondary market remains subdued, particularly affecting lower-priced properties, as the primary market continues to dominate [1] Group 2 - Following the holiday period, the return of many homeowners and buyers has led to a stabilization in secondary property viewings and transactions [2] - Despite the recovery in secondary market activities, the expectation of new developments entering the market and developers actively promoting remaining inventory suggests that primary market demand will remain strong [2] - There are still buyers looking for good deals in the secondary market, indicating ongoing interest despite the current market conditions [2]